Soybean prices rise on the Chicago Stock Exchange on Monday morning (25). Close to 7:50 am (Brasilia time), the highs ranged between 9.25 and 10.50 points, taking August to US$14.45 and November to US$13.27 a bushel. The market continues the gains recorded last Friday, in addition to following the gains of bran, oil, corn and, mainly, wheat, which rose more than 3% this morning.
Traders remain focused on the climate of the Corn Belt, with the best conditions still being recorded in the eastern portion of the belt and the remaining areas waiting for more rain. Still, there are expectations among some professionals of an improvement in the condition of American crops to be reported in this second USDA (United States Department of Agriculture) report.
“Despite yesterday’s rains in the north and east parts of the corridor, they were insufficient. Iowa Minnesota, Southern Illinois, Nebraska, Missouri, Kansas and Arkansas continue to need rain.
The state of Texas remains terribly dry. The month of August will have to be closely monitored, as any reduction in the indexes could bring about breaks, or a disaster for the crops”, explains Ginaldo Sousa, director general of Grupo Labhoro.
For the next 10 days, updated maps show that the central and western United States still suffer from limited amounts of precipitation, which is still a cause for concern.
However, the next seven days, according to the map of NOAA – the official US weather service – should be of more intense volumes in states such as Kansas, Missouri, Oklahoma, Kentucky, Tennessee, as well as Indiana and Illinois. In Iowa, rains are already more scarce.
In addition, attention remains redoubled on the agreement signed on Friday for the export of Ukrainian grain, followed by new Russian bombings on the port of Odessa, Ukraine, on Saturday, even without major damage and also to the behavior of the financier.
The week is another Federal Reserve decision on the US interest rate and the second quarter GDP result in the US, for which another contraction is expected.
Here’s how the market closed last week: