Soybeans soared on Wednesday as traders evened up their positions prior to the closing of the market for the US Thanksgiving holiday and before the short trading on Friday.
The US soybean futures for January delivery were trading higher by 0.49% to $1,437.00 per metric ton on Wednesday’s trading session.
An analyst noted that the spike was partly due to the dry weather forecast that could further stress the crops.
President of Iowa-based US commodities Don Roose added to this, saying that the South American weather would be a key for the market going forward given the vast amount of soybean crops in the area.
The grain spike came following the lower trading earlier in the wake of growing concerns over the Covid cases surge in China and the oil prices plunge due to the Russian oil price cap sanctioned by the Group of Seven nations (G7).
In a report from the US Department of Agriculture on Wednesday, data shows that the US had exported 110,000.00 tons of soy to China for the market year 2022/2023.
Meanwhile, a trader noted that Ukraine’s black sea grain deal also affected the run-up on prices in the market ahead of Thanksgiving.
Argentina Govt Reports 73% Soybean Crop Sold
Argentina, the world’s top processed soy exporter, reportedly sold 72.60% of soybean crops for the market year 2021/2022, which was short of the 75.60% sold in the same period a year ago.
From November 10 to 16, the South American nation sold 165,500.00 tons of soy, which was below the 641,700.00 tons that it had traded off at the same point a year prior. Meanwhile, it recorded a harvest of 44.00 million tons for 2021/2022.
In September, soybean sales soared to 13.30 million tons as producers were driven by a temporary preferential exchange. However, soy sales have slowed since then, partly due to a prolonged drought.