Soybean futures from the Chicago Board of Trade they went up this Wednesday thanks to the coverage of short positions and technical purchases, as the market recovered after the nearest month contract hit its lowest level in three years.
The corn futures also advanced, recovering from three-year lows, while wheat prices fell under pressure from abundant Russian production.
Speculative investors accumulated large net short positions in the markets, which makes them vulnerable to hedging their positions.
Abundant global supply and competition for US soybean and corn exports continue to limit profits, according to analysts. Soybean futures fell earlier as cheaper South American supplies make U.S. soybeans less competitive globally.
“Soybean market fundamentals are mostly bearish”said Tomm Pfitzenmaier, analyst at Summit Commodity Brokerage. “However, small rallies to correct an oversold condition like the one we saw this week are certainly possible.”
The advance of the soybean harvest in Brazil is bringing new supplies to the world market, while In Argentina, the harvest is scheduled to begin in April.
Brazilian industrial group Abiove cut its estimate for Brazil’s soybean production in 2024. “The trend for soybeans is downward and will continue to decline,” said Rabobank analyst Vitor Pistoia, adding that his bank expects prices to fall. to $11 at the end of the year.
Soybean price: how much is it trading this Wednesday, February 28
Soybean futures They rose 0.3% to US$416.17. On the day it operated below US$415, the lowest for a closest contract since November 2020.
Price of corn and wheat: how much are they trading for this Wednesday, February 28
He corn CBOT advanced 1% to US$162.30Meanwhile he wheat fell 1.4% to US$212.28.
Source: Ambito
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