Soybeans sink to three-month lows after Fed rate signals

Soybeans sink to three-month lows after Fed rate signals

Soybean prices fell this Thursday, September 21, and hit three-month lows. This occurs within the framework of a day of widespread losses in the world’s main stock markets, with investors assimilating the message of the Federal Reserve of the United States regarding interest rates and their possible increases.

The November contract of the oilseed fell 2% to US$475.37 per ton, while the January contract fell 1.9% to close at US$481.62 per ton.

Its byproducts accompanied beans, with a fall of 1.7% to US$1,315.04 per ton, while flour lost 1.7% to stand at US$430.22 per ton.

Corn, meanwhile, fell 1.5% to US$187.10 per tonas a consequence of the advance of the American harvest and due to the competition of the Brazilian cereal in the international market.

Finally, wheat fell 2.2% and reached US$211.55 per tondue to “the relative calm in the Black Sea area, after the successful dispatch through the humanitarian corridor of two ships from the Ukrainian port of Chornomorsk, and due to the good prospects for supply and sales from Russia, beyond of the unofficial imposition by the Kremlin of an export value for Russian wheat that reduces some of its competitiveness,” they commented from Granar.

Soybeans hit three-month lows: in what context?

Last Wednesday, the Federal Reserve of the US decided to maintain the interest rates. However, the president of the entity, Jerome Powellthey warned that They raised the previous projection by 50 points that it had with respect to 2025, which implies that the rate hike will continue for longer.

The reasons for the decline lay in the poor weekly export data from the United Stateswhich “revealed the calmness with which Chinese demand is moving, which continues to be supplied mainly in South America,” explained analysts from the Granar brokerage.

In its weekly report on United States exports, the United States Department of Agriculture (USDA) today reported 2023/24 soybean sales of 434,100 tons, below the 703,900 tons of the previous report and the range expected by operators. between 550,000 and 1,200,000 tons.

Source: Ambito

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