Soy rises more than 40 pts in Chicago in the early afternoon of this 2nd with support…

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The highs in soybeans exceed 40 points among the most traded contracts on the Chicago Stock Exchange in the early afternoon of this Monday (18). Around 12:20 pm (Brasilia time), they rose between 38 and 42.50 points, taking August to US$ 15.04 and November – a reference for the American crop – to US$ 13.84 per bushel.

Giving room for the resumption of quotations are the weather in the American Midwest and more soy oil futures on the CBOT.

The weekend in the Corn Belt saw rains, once again, light and sparse, located – according to the Labhoro Group’s investigation – in parts of the eastern states, such as Ohio, Indiana and ILLinois, northern Missouri, eastern Dakotas and eastern Iowa. And the next few days should still be hot and dry.

“Forecasts and according to the European model for the next 10 days indicate predominantly dry weather in the central areas of the corridor and west side, with the east side receiving rains ranging from 25 mm to 50 mm, but temperatures will be rising varying from 32 to 35 degrees. The GFS model is a little more rigorous and indicates predominantly dry weather for the entire Corn Belt”, explains Ginaldo Sousa, director general of Grupo Labhoro.

The maps below show rainfall forecasts for, respectively, 5 and 7 days in the United States. The images show that the most intense volumes of precipitation are expected for the east of the belt and the extreme east of the country, leaving an important part of the heart of the Corn Belt without adequate humidity for this moment.

usa 5
Rain forecast for the next 5 days – Map: NOAA
USA 7 days
Rain forecast for the next 7 days – Map: NOAA

In this way, the executive believes that the new weekly crop monitoring bulletin from the USDA (United States Department of Agriculture) can bring a reduction of 1% to 2% in good or excellent conditions for North American crops.

Still on the CBOT, attention is paid to soybean oil futures, which are up more than 4% among the most traded positions, following the good gains that are also observed in oil. Brent is up more than 2% and is back above US$ 100.00 per barrel.

The other grains also rise in Chicago, as well as soybean meal, but in a more contained way.

Despite the support on the weather, the grain market – as well as the commodities market in general – still monitors the fears that the market carries about the recession, Covid-19 in China and the uncertain future of the global economy. Today, which seems to be a day of a little more risk appetite on the part of funds and speculators, in addition to rising commodities, the dollar index dropped 0.63%.

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