Soybean prices continue to decline significantly on the Chicago Stock Exchange on Friday afternoon (13). At around 2:45 pm (Brasília time), prices were down between 7.25 and 8 points in the main maturities, with January at US$ 9.88 and May at US$ 10.05 per bushel. Soybean futures are testing their lows, following declines in neighboring markets and still feeling pressure from fundamentals.
The dollar rising again is helping to weigh on oilseed prices on the CBOT. At around 3 pm, the US currency was up 0.11% and was worth R$6.02, having already tested levels below R$6.00 during the week, which was quite volatile for the foreign exchange market.
"The pressure on soybeans comes from the strong weakening of the real against the dollar, making Brazilian soybeans more competitive for export. The large harvest in Brazil, with an expected production of over 170 million tons, and a series of uncertainties about how the relationship between the US and China will be from January onwards, also generate additional pressure on the asset", say analysts at Agrinvest Commodities.
And although there is a growing and present demand in the market, its strength is still limited to change the direction of prices.
However, in the Brazilian market, business is ending the news in a rather cold scenario, with little progress. "Even with the higher exchange rate, farmer selling is not going as expected. The week will, once again, close with between 1 and 1.5 million tons sold", adds Agrinvest.