The soybean futures in the United States rose this Friday, November 3 and hit a six-week high, driven by the Uneven crop weather in top soybean producerBrazil, and the new export demandwhich together with a fall of the dollaralso supported the futures of corn and the wheat.
He November oilseed contract rose US$8.63, or 1.8%, to US$487.77 per ton, at the same time that January did so at the same figure to stand at US$496.68 per ton and reached six-week highs.
Lastly, the wheat rose US$2.57, or 1.2%, and closed at US$210.36 per ton, also due to the weakness of the dollar and the cut in production estimate in Argentina from 800,000 tons to 15.4 million made by the Buenos Aires Cereal Exchange (BCBA).
Commodities boosted by fall of the dollar
All three products were boosted by data showing that the U.S. job growth slowed more than expected in October, supporting the view that the Federal Reserve could have finished raising interest rates.
In that context, the Dollar index hits six-week low after hearing the news, which made the cereals and the soy Americans will be more attractive in the world market. “(The fall of the dollar) helps our competitive posture for exports (…) That has been something that has been working against us,” he said Terry Linnan analyst at Linn & Associates in Chicago.
He United States Department of Agriculture confirmed the private sale of 131,150 metric tons of soy American to destinations unknown.
Meanwhile, operators are monitoring the unstable climate for crops in Brazil, where soybean planting is underway. “We are seeing increased concern about the irregular start to the growing season in Brazil,” Linn said.
The Dry conditions have been a cause for concern in parts of Mato Grosso state, the main soybean producer, while excessive rains have drenched southern areas. However, the StoneX brokerage This week it raised its forecast for Brazil’s 2023/24 soybean crop to 165 million metric tons, up from the previous forecast of 164.1 million.
In Argentina, Farmers received between 50 and 60 millimeters of rain on Thursday, which relieved cropsaccording to Rosario Cereal Bag.
In the United States, the harvest is coming to an end, slowing the pace of selling related to the hedging of corn and soybean futures in Chicago. Analysts expect the USDA monthly supply and demand reports on November 9, in which the Government will publish updated estimates of the US and global harvest.
Source: Ambito
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