The weakening of the quarantine has a positive impact on the US exchanges

2020-05-27 12:02:02
Machine translation
The weakening of the quarantine has a positive impact on the US exchanges

After the long weekend stock indexes and prices of oil, soybeans and soybean oil in the United States on Tuesday began to rise. Memorial day, which the country celebrated on Monday, for most people it symbolizes the beginning of summer, vacations and picnics. On the background of easing of the quarantine in most States, this adds traders optimism about a quick economic recovery.

 

amid a rise in price of us stocks stock indexes Dow Jones and S&P 500 increased by 1.2-2.2%, and the price of WTI crude oil – by 1.8% to 34.2 $/barrel.

 

the Decline of the dollar relative to other currencies by 1% further supported the prices of American goods, even in the absence of purchases from China.

 

the July soybean futures in Chicago after a sharp drop before the weekend yesterday restored positions and increased by 2% to 311,3 $/t with the support of the data purchased by China last week 260 t of U.S. soybeans, of which 60 thousand t – old and 200 thousand MT of new crop.

 

the Export of soybeans from the U.S. last week fell by 6% to 333 thousand tons, which is 38% less than the corresponding period last year, and just season the exported 35 million tons of soybeans, up 40% over last year's pace.

 

the market presses news about the purchase of Chinese state-owned company Cofco 300-360 thousand MT of Brazilian soybeans in September at a price higher than the price of U.S. soybeans, because of concerns about the further escalation of tensions between the US and China.

 

As of may 24, U.S. soybeans planted 65% of the area, which is 10% higher than the average 5-year rate and further pressure on prices.

 

Futures for soybean oil in the United States yesterday increased by 2.2% after growth of quotations of Argentine soybean and Ukrainian sunflower oil. Exchange in Malaysia for two days is closed, trading on palm oil was not performed.

 

the price of soybean oil in Argentina increased to 610 $/MT FOB Up River through a low refining margin and the reluctance of farmers to sell soybeans.

 

Prices for Ukrainian sunflower oil this week rose to its highest level this year - $740-750/MT FOB for shipments in July-August, while the price of oil from the seeds of the new crop remain at the level of 690-700 $/t FOB, even despite plans to increase the sowing area of sunflower to 6.2-6.3 million hectares, of which are already planted 5.9 million hectares.

 

Russia is also expecting a record crop of sunflower, which is now planted 7.4 million hectares or 915 of the forecast. Good precipitation contribute to the development of sunflower crops in both countries.

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