The Chicago soybean futures continues to rise this Tuesday, July 23 after large gains in the previous session, at a time when the Concerns over US weather outlook and A Reassessment of Donald Trump’s Chances of Winning the elections triggered short covering by speculators.
The most active oilseed contract in the Chicago Board of Trade (CBOT) keep it up 0.5% to US$412.81 the tonafter uploading a 3.2% on Monday, the biggest one-day rise since June last year.
Soybean prices continue to rise: how does the campaign influence?
Soybeans hit a 2020 low last week amid a wide offer and the anticipation that Trump could resume his trade war with Chinathe main importer of soybeans, if it regains the presidency.
But the decision of the American president, Joe Bidenthe Sunday stepping aside has changed the mood around the election, with the vice president, Kamala Harrisreceiving an avalanche of support and cash.
Vitor Pistoiaan analyst at Rabobank in Sydney, says that “It is more of a short-term hedge of funds” and adds that forecasts of warm and dry weather in the United States are having an impact.
“In the United States, it has stopped raining,” he said. “It’s a little worrying. The market is reflecting fears that the harvest will not be as large as expected.”
He United States Department of Agriculture (USDA) on Monday rated the 68% of soybean crop in good to excellent conditionunchanged from last week and the highest for this time of year since 2020.
Corn and wheat also rise
In other crops, the CBOT corn climb 1.6% to US$160.13 the ton, after having risen by 2.5% in the previous session, while the wheat upload a 0.6% to US$202.55 the ton.
Corn, wheat and soybeans are near their 2020 levels amid abundant supplies. Speculators are betting heavily on lower prices, leaving markets vulnerable to bouts of short covering..
He USDA He said that the 67% from the harvest of corn U.S. wheat is in good to excellent condition, down one percentage point from a week ago, and the winter wheat harvest was progressing more slowly than expected.
Hot and dry weather was also forecast for parts of Canada and the Black Sea region, while poor conditions in France have affected crops.
According to analysts, Russian wheat export prices remained unchanged last weekshipment volumes remain low and farmers are in no hurry to sell at current low levels.
The European Union’s crop monitoring service MARS on Monday cut most of its forecasts for average EU cereal yields this year, with the sharpest declines for maize and sunflowers.
Source: Ambito
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