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Soybeans Continued To Fall in Chicago After US Elections, and Waiting for the New USDA

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The time is post-election and pre-USDA in the US and the technical movement of prices on the Chicago Stock Exchange continues in the trading session on Wednesday (7). Soybean futures that started the day with stability began to work in negative territory and, at around 1.35 pm (Brasilia time), fell between 6.50 and 6.75 points in the main contracts.

With these casualties, November / 18 lost $8.70 and was quoted at $8.65 a bushel, while May / 19 had $9.03 at the same time.

The US Department of Agriculture reports on Thursday, the 8th, and market expectations are that there will be a reduction in USDA estimates for maize and soybean yields, but at the same time, oilseed stocks could come higher than last month.

The market is still looking at the conclusion of the US elections that have renewed US Congressional representatives for next year. President Donald Trump lost a majority in the House, which was won by Democrats but raised its support in the Senate, with Republicans occupying most of the seats.

For agriculture, therefore, the changes are limited and the focus remains on the trade war between China and the United States. “The new elections will not take away Trump’s power to approve or cut off any economic deal with China.” Donald’s pen power continues to be feared by North American farmers, explains ARC Mercosur market analyst Matheus Pereira.

Thus, the question of an agreement between the two countries remains open and the feeling that Brazil will remain the main supplier of soybeans to China. Meanwhile, the eyes of the market and its participants are now turning to the G20 meeting in Argentina at the end of the month.