Traders remain very attentive to the supply picture, with harvesting in the US and planting in Brazil. The data updated by the USDA (United States Department of Agriculture) on the American harvest showed that, despite the good evolution in the week, there is still a delay in the field work.
In just one week, the harvested area of soybeans went from 8% to 22%, above the average market expectation of 20%. A year ago, however, this percentage was 31% and the multi-annual average is 25%.
There are still 81% of the soybean fields in the maturation phase, with the leaves dropping, against 63% last week, 84% in 2021 and 79% on average in recent years.
There is also some delay in the sowing of soybean 2022/23 in Brazil due to excessive rainfall in some regions of Brazil and this is another factor of attention to the market, since expectations about the new Brazilian crop are quite high.
"The American corn and soybean harvest is delayed and so is planting in Brazil. It seems that the American producer is taking advantage of the dry weather to dry the soybeans and corn in the field, thus avoiding the high cost of natural gas. are good for this cost reduction strategy. In Brazil, the very humid and colder than normal climate in the South of Brazil can delay the planting of soybeans and summer corn", explains Eduardo Vanin, market analyst at Agrinvest Commodities.
The news about the conflict between Russia and Ukraine remains on the radar, as well as those coming from the financial market that continue to weigh heavily on commodities in general. And they all rose broadly on Tuesday, with the highest recorded for oil after yesterday's surge.
The weaker dollar against the real after the result of the first round of the presidential elections also contributed to the increases in soybeans on the CBOT.