Soybeans and corn closed sharply lower on the CBOT this Monday.

The August soybean contract traded on Chicago Board of Trade (CBOT) It closed this Monday (27) with a significant drop of 39.50 points and 3.17%, quoted at US$ cents 1,208.50/bushel; the September contract fell 40.50 points and 3.27%, to US$ cents 1,199.75/bushel. As for derivatives, the bran and the oil They depreciated by 3.17% and 3.86%, respectively.

Corn 

The September corn contract finished down 12.50 points and 2.69% in ChicagoThe December futures contract fell 13.50 points and 2.77%, to US$ 474.00/bushel. The December contract fell 13.50 points and 2.77%, to US$ 474.00/bushel.

Wheat 

The September wheat contract traded in CBOT It fell 18.00 points and 2.65%, trading at US$ cents 660.00/bushel. Kansas City Bank Exchange (KCBT)Meanwhile, the contract expiring in the same month depreciated by 16.25 points and 2.18%, to US$ cents 729.00/bushel.

Market fundamentals

In this trading session, the market was pressured mainly by profit-taking, following the strong gains seen last week, and by the fall in oil prices, reflecting the reduction of geopolitical tensions in the Middle East. Over the weekend, the United States suspended its campaign of air strikes against Iran, raising expectations of a diplomatic solution to the conflict and the resumption of navigation in the Strait of Hormuz. The consequent devaluation of oil reduced the economic attractiveness of biofuels produced from oilseeds and cereals, putting pressure on agricultural prices. Despite the losses, the weather remains on investors' radar. In its daily bulletin, the U.S. Department of Agriculture (USDA) The agency reported that the heat wave has moved across the Corn Belt, the country's main soybean and corn producing region, during a critical period for crop development. According to the agency, maximum temperatures in the western portion of the agricultural belt, including areas of Iowa, Missouri, Nebraska, and South Dakota, could reach 38°C, while isolated showers in the eastern part help reduce heat stress on the plants. In the Great Plains, where important wheat-producing areas are concentrated, the USDA He highlighted that the intense heat continues to harm pastures and rainfed crops, especially in regions with low soil moisture. Temperatures can reach 43°C in parts of Kansas and exceed 38°C in areas of South Dakota and southeastern Montana. Regarding demand, the… USDA The agency announced two separate sales of soybeans for export, with 132,000 tons destined for China and 126,000 tons for an undisclosed destination. The agency also released weekly shipment figures for the period ending July 23, totaling 349,000 tons of soybeans, 1.488 million tons of corn, and 395,000 tons of wheat. Now, market attention turns to the release of the weekly report from… USDA about the stages of development and conditions of North American crops.

This text was translated by machine from Brazilian Portuguese.