“The fundamentals of the decline lay in a massive profit-taking by investment funds after the escalation in bean prices due to the advanced Russian military,” the operators said.
During the week, Soybeans were traded at US$645 a ton during the trading session on Thursdayits highest price since September 2012.
However, “the dimension of the fall was such today that it left a slightly negative balance for the prices of soybeans in the week,” they remarked from the grain broker Granar. So much so, that In the weekly balance, the price suffered a drop of 0.70%.
However, the broker noted that the port terminals of the Ukraine and many of Russia are paralyzed, so “that central factor for the market continues to be bullish, both for soybeans, corn and wheat.”
“Some 380,000 tons of sunflower oil that India must receive from the Black Sea area are stuck in the ports,” he said in his analysis of the activity in Chicago.
In fact, Indian buyers could shift towards soybean oil and palm oil for March-April shipments.
India buys palm oil from Indonesia and Malaysia, imports soybean oil from Argentina and Brazil, and sunflower oil from Russia and the Ukraine.
Its by-products also ended the day on the downside, with a strong retraction in Oil fell 4.51% (US$71.65) to US$1,515.65 per ton, while flour fell 3.57% (US$18.30) to conclude the session in US$ s494.16 the ton.
For its part, Wheat plummeted 5.10% (US$13.98) and stood at US$259.63 per tondue to taking profits after touching, during the session, its maximum value since 2008, indicated the Rosario Stock Exchange (BCR). Unlike soybeans, the cereal closed with gains for the week.
According to Granada, the week-on-week rise was 5.77%, that is, almost US$17 more than last Friday, although that difference was able to reach US$50 per ton.
Beyond the drop, Granar said that “wheat shipments from Ukraine and Russia are currently compromised and, if hostilities continue, there will be buyers who will begin to get impatient due to the chance of not receiving the grain already purchased on time and in the correct form.” , and others who will resist validating the values claimed by other buyers, who will seek to take advantage of this crisis”.
Finally, Corn fell 5.10% (US$13.98) and closed at US$259.63 per tonas a consequence of closing positions and taking profits after reaching a maximum in more than eight months during the week put pressure on cereal prices, explained the BCR.
Source: Ambito
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