On the Chicago Stock Exchange soybean prices fell by 7%

Soybean futures on the Chicago Stock Exchange SWOT fell more than 7% on the day yesterday amid a drop in oil prices of more than 4%, as well as forecasts of precipitation in the US soybean belt.

July futures fell 7.2% to 5 500.8/ton, and November futures – 7.4% to.478/4/ton, almost losing all growth for the week, which was triggered by the release of data on sowing areas and stocks in the United States.

The report that Russia and Saudi Arabia, after the end of the OPEC+ meeting, agreed on the possibility of increasing oil production within OPEC+ from August, and the UAE supported this decision and confirmed its readiness to adhere to the agreement until April 2022, collapsed oil prices by more than 4% to the level of a week ago.

September Brent crude futures lost 4.4% to 7 74.5 a barrel yesterday, while August WTI crude futures lost 4.4% to 7 73.45 a barrel.

Weather forecasts for the next 10 days in most of the Midwest of the United States show moderate or heavy rains with normal temperatures, which will be very favorable for pollination of corn and soybeans during the flowering and Pod-tying stages, which in turn removes the speculative weather factor in the market that put pressure on prices.

Data on soybean exports from the United States for the week showed an increase of 87% to 206.1 thousand tons and exceeded traders ' expectations, and all exports since the beginning of the season reached 57.452 million tons, but in two months it is still necessary to ship about 4.6 million tons or 575 thousand tons per week to reach the USDA forecast.

The USDA representative in Brazil raised forecasts for soybean production in Brazil in 2021/22 mg to 143.5 million tons, against 137 million tons this season due to a further increase in sowing areas. After the end of trading, a weekly report on the state of crops from the USDA was released, according to which the assessment of the state of soybean crops in the United States for the week decreased by 1% to 59%, rated as good and excellent, from 71% a year ago.  The lack of precipitation in the northwestern part of the US soybean belt remains and in the near future the amount of precipitation may be less compared to the eastern part.

Therefore, the weather factor will continue to have a strong speculative impact on prices in the coming weeks.