The Federal Reserve (Fed), the central bank of the United States, will announce tomorrow whether it will raise interest rates in the United States.
Cereals traded lower on Tuesday on the Chicago Stock Exchange, which was under pressure from expectations of higher interest rates in the United States. The US Federal Reserve (Fed) will announce its decision tomorrow. Corn led to a decline – the contract, which expires in July, fell 1.3% to $ 7.93 a bushel. The same mature soybean was down 0.9% at USD16.305 per bushel and wheat was down 0.95% at USD10.455.
StoneX’s Donna Hughes told The Wall Street Journal today: “The market is not yet ready for strong challenges.
On the other hand, delays in planting in the United States limited the decline. The U.S. Department of Agriculture (USDA) said on Sunday that only 14% of U.S. corn is grown, compared to a five-year average of 33%. In the case of soybeans, sowing reached 8%, with a multi-year average of 13%. In spring wheat, 19% is sown, averaging 28%.
“There has been very little planting improvement last week, which is not surprising given the recent weather,” commented Carl Setser of AgriVisor in a note. “Any corn sown after mid-May will lose its yield,” he recalled.
Brazil, a major producer and exporter of cereals, is expected to ship 8.075 million tonnes of soybeans in May, down 43% from the same month last year, according to the National Association of Cereal Exporters (Anec). Ports.
The country is expected to export 737,400 tonnes this month – with no record of being exported in May 2021. The amount of wheat leaving the country should be 69,500 tons, without annual comparison.
Source: Valor Econômico
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