The reasons for the decline lie in Argentina’s decision to offer farmers a better exchange rate for soybeans, which “threatened to increase export competitiveness at a time when US offerings generally dominated the market, fueled a decline”. Rosario Stock Exchange (BCR) explained.
On Sunday, the Minister of Economy, Serge Massa, declare $200 exchange rate for exports of soybeans and derivatives, what On Monday, the average price paid to the producer increased from $50,000 to $70,000 a tonne and spurred sales of goods.
“In short, the increase in supply decreases the price produced in the short run,” Retained stock market entity.
Grain broker Grainer agreed with this analysis and assured that “The main slowdown from the beginning to the end of the day was Argentina, due to the increase in sales that occurred in the middle of the US holiday yesterday.”
Additionally, expectations of record US soybean production have acted as an anchor on prices as farmers prepare for harvest.
Soybean by-products showed a declining trend Oil declined 3.4% (US$56) to US$1,520.28 per tonnewhereas Flour fell 2.4% (US$11.68) to US$477.84 per tonne.
Corn Price in Chicago, Tuesday, September 6
for its part, Maize closed at US$ 268 a tonne, up 1.8% (US$4.63). as a result of “Miscellaneous Concerns over Crop Shortage in America’s Midwest”.
Furthermore, while the market awaits the next report from the United States Department of Agriculture (USDA), The agency is expected to rate 53% of the country’s corn in good to excellent condition, a percentage point lower than last week’s rating, which supports the price hike.
Wheat Price in Chicago, Tuesday, September 6
eventually, Wheat advanced 0.9% (US$2.57) and stood at US$293.95 per tonne, That’s why “Recent rains in a North American country will provide a much-needed boost to soil moisture prior to planting winter crops.” BCR indicated.