soybean prices fell this Thursday, June 22, for taking profits after reaching the previous day multi-month highs in the Chicago Stock Exchange.
The contract of oilseed CBOT relented 1% at u$s551.33 a tonafter reaching, in the last round, the maximum value for the contract for new crops from the March 9. For his part, he corn fell 1.6% to $260.03. Meanwhile, the wheat advanced 0.6% at u$s271.53 a ton for the same contract.
The fundamentals of the drop lay in the taking of profits by speculative funds after the strong rises in recent days.
“The withdrawal of profits also came one day after the words of the president of the Federal Reserve of the United States, Jerome Powellwhich made clear the chance that in July the agency will resume its rate hike program to bring US inflation to a target set at 2% year-on-year”indicated the analysts of the brokerage Seed.
This drop occurred despite the fact that environmental data speaks of a worsening of the drought situation in productive areas of the US.
Thus, after the weekly update of the drought monitoring map, the United States Department of Agriculture (USDA) today raised the proportion of land covered with soybeans experiencing drought conditions from 51% to 57%.
“Illinois, the main soybean-producing state, saw the acreage grow under moderately dry conditions from 64.99% to 82.02% and the proportion under severe drought from 14.68% to 30.67%”indicated from Seed.
Indeed, with the update of the map that monitors this condition in the United States, the USDA raised from 4% to 15% the proportion of land devoted to this variety that experiences drought conditions.
Concerns about crops elsewhere, including Europe, also increased. In Germany, the 2023 wheat crop of all types is expected to shrink 2.9% year-on-year to 21.87 million metric tons, according to the latest crop estimate from the country’s agricultural cooperative association.
The European Union’s crop monitoring service, MARS, this week cut almost all of its average yield forecasts for the 2023 grain and oilseed crops in the bloc.e, alleging adverse weather conditions.
Source: Ambito
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