“The fundamentals of the sharp drop were rooted in the firm progress of the North American harvest thanks to the good weather conditions and the beginning of the cereal harvest in Europe,” indicated a report from the Rosario Stock Exchange (BCR).
The new harvest in the commercial circuit put in the background the continuity of the war in Ukraine, given that “there will be more supply to supply the needs of the buyers”, indicated the analysts of the Granar grain broker.
Regarding this last point, this Tuesday The Turkish government insisted on its safe corridors initiative to remove the Ukrainian grain held since the beginning of the war.
However, “while the bombing continues, the obstacles that the Turkish plan must overcome are the same: the Kremlin’s demand that some of the sanctions be removed and kyiv’s refusal to demine the Black Sea areas near key areas. such as the port of Odessa”, highlighted the broker.
To this was added that the Russian consultant SovEcon raised its estimate on the record 2022/2023 wheat harvest in Russia this Tuesday from 88.60 to 89.20 million tons and added pressure to prices.
For its part, corn fell 3% and stood at US$299.49 a tondue to the good weather prospects manifested in the productive areas, encouraged by favorable temperatures for crops in the Midwest of the United States, indicated the BCR.
In addition, the market anticipates that the United States Department of Agriculture (USDA) rates 70% of the corn crop as good to excellent in its weekly report, which supports the declines. Also, the steady progress of the harvest in Brazil added pressure.
By the side of soybeans, the July contract fell 1.2% to US $ 617.66 a tonwhile that of August did so by 1.5% to position itself at US$587.35 per ton.
The fundamentals were based on beneficial rains for the crop in the United States, a lower demand from China for merchandise and the pressure exerted by the sharp drop in corn.
Source: Ambito
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