Wheat falls in Chicago with pressure on funds and advance of harvest in the US
Wheat prices closed lower on the Chicago Stock Exchange this Wednesday (27), registering the fifth consecutive session of devaluation. The market was pressured by the sales of investment funds, the fall in oil prices and the advance of the winter wheat harvest in the United States.
On the Chicago Stock Exchange, the contract for delivery in July closed the day down 2.05%, quoted at US$6.2250 per bushel.
The market continues to react to expectations of a possible diplomatic advance in the Middle East, even in the face of uncertainty in negotiations.
"The perception that there may be an initial agreement to reduce tensions in the region contributed to the fall in oil prices and increased the liquidation movement in agricultural commodity futures contracts", highlighted Granar.
In addition to the geopolitical scenario, the start of the winter wheat harvest in the United States also added pressure to prices.
Despite this, Granar reported that the deterioration of crops still limits more intense losses, especially in the Kansas market, a reference for hard winter wheat.
In the weekly report released yesterday, the USDA (United States Department of Agriculture) reduced the share of crops classified between good and excellent from 27% to 26%.
The index remains well below the 50% recorded in the same period last year and was also below the average expectation of private analysts, who projected 28%.
Soy
Soy futures prices ended this Wednesday's session (27) in a mixed movement on the Chicago Stock Exchange.
The most traded maturity for delivery in July registered a drop of 0.06% and was quoted at US$ 11.8525 per bushel.
On the other hand, the contract for delivery in December also registered a significant movement in this session and ended the day up 0.11% and priced at US$ 11.8150 per bushel.
According to information from Granar, soybean oil boosted soybean prices for contracts for the end of this year.
"Despite the drop in oil, the market continues to be supported by domestic demand, driven by the greater use of biodiesel and 45Z tax credits, which reduce the competitiveness of imports", highlighted Granar.
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Corn
The corn futures contract for delivery in July ended this Wednesday's session with a drop of 1.09% on the Chicago Stock Exchange, quoted at US$ 4.5250 per bushel.
Prices remain under pressure due to favorable weather conditions in the Midwest of the United States, which accelerate the final stretch of planting given the forecast of little rain.
Granar pointed out that the devaluation of oil, traded at close to US$91 per barrel, also contributed to the negative movement, even with traffic still restricted in the Strait of Hormuz and the absence of an agreement between the United States and Iran.
The market is also following the bill that authorizes the sale of E-15 throughout the year in the United States.
After narrow approval in the Chamber of Representatives, the proposal is still awaiting analysis in the Senate, where the influence of the oil sector is considered strong and 60% of the votes are needed for definitive approval.
High costs put pressure on wheat and increase the risk of passing on to the consumer
Source: CNN