The value of soybeans had exceeded the ceiling of 400 dollars at the beginning of the day in the Chicago Market. But then it deflated and ended up closing down. In any case, the price of the oilseed is still the highest since July 14, 2016.
The November position had increased by 1.7 dollars during the day, which placed the oilseed at 401 dollars per ton. However, reaching the close of the day, it had a slight setback and ended up trading at $ 397.5 per ton, this is $ 0.5 below Monday.
“The market is moving in a context of great expectation due to the appetite that China has been showing and an offer that is adjusted in the US, to which is added a quota of uncertainty about the future of production in South America, given the marked delays in planting in Brazil, “said Grassi brokerage market analyst Ariel Tejera.
“Also, it is necessary to highlight the marked upward bet that hedge funds are maintaining. Moving forward, the focus will remain centered on the possibility that China sustains the dynamism of demand and on the evolution of the climate in Brazil,” he said but clarified that the price of the oilseed was deflated possibly by “the absence of fresh news of demand”.
In any case, beyond this slight drop in the value of the oilseed, the price has had a significant rebound since it hit the minimum this year on April 27. At that time, as a result of the coronavirus pandemic, the value had fallen to $ 308. Taking the closing of this Tuesday, this marks a rise of 90 dollars, that is, a boom of 30%.
“The trend remains firm. In general, when the price rises significantly in such a short time, it is feasible that a correction occurs if any of the elements that are giving it a boost, undergo any change,” said the Agronomist, specialist in markets of the Agro, Paulina Lescano.
In this sense, this increase in the value of soybeans favors Argentine producers who are currently beginning a new planting of the crop, which, according to projections of the Buenos Aires Cereal Exchange, will exceed 18 million hectares.
“It seems to me an excellent opportunity to make decisions regarding the new soybean campaign. The producer can put a floor with flexible coverage,” added Lescano.
In the local market it also followed the international line and soybeans have been experiencing significant increases. To compare, the price of the main grain that is sown in Argentina, on April 27 in the available market was quoted at 14,000 pesos and this Tuesday it closed at 26,700 pesos, a 90% increase, according to the records of Matba Rofex.
This occurred, according to Tejera, due to the rise in foreign market values, the devaluation of the official exchange rate in this period and the temporary changes in the withholding scheme as of this month.
However, beyond this important rise, it is still not enough for producers to dispose of soybeans. Since the main factor for farmers to retain soy in silobolsas is the exchange rate gap that exists between the official dollar and the blue.
Meanwhile, corn in the US market fell 0.48 dollars, falling to 163.6 dollars, while wheat also had a fall of 0.72 dollars, reaching 226.1 dollars per ton.