Brazilian tax change sends soy, corn higher
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Soybean futures surged on Thursday following Brazilian rule-tightening, sparking expectations of increased US exports. Corn futures also rose after eight sessions, propelled by the news. Wheat futures showed mixed trends as Russian crop damage weighed against a smooth US harvest. Meanwhile, US crude oil prices climbed on ECB interest rate cuts and OPEC+ reassurances. Equity markets saw mixed results with tech pullbacks, while gold prices hit a two-week high amidst weaker US jobs data.
- Soybean futures shot higher Thursday as Brazilian rule-tightening generated ideas of higher US exports. Brazilian soybean and cotton companies decried Brazil’s executive order, saying new rules for use of tax credits will make companies less competitive on global markets. The Brazilian news also helped corn futures move higher for the first time in eight sessions. Wheat futures were mixed as traders weighed Russian crop damage versus a so-far smooth US winter wheat harvest expected to produce a high-quality crop. July corn added 12¾¢ to close at $4.52 a bu. Chicago July wheat declined 7¼¢ to close at $6.39½ per bu. Kansas City July wheat edged up 1¾¢ to close at $6.78 a bu. Minneapolis July wheat dropped 5¾¢ to close at $7.06¾ per bu. July soybeans soared up 22¾¢ to close at $12 per bu. July soybean meal added $3.30 and closed at $362.80 per ton. July soybean oil added 1.22¢ and closed at 44.35¢ a lb.
- US crude oil prices climbed again Thursday after the European Central Bank announced interest rate cuts that generated hopes the Fed will follow suit, and OPEC+ ministers reassured investors the latest oil output agreement could change depending on the market. The July West Texas Intermediate light, sweet crude future added $1.48 to close at $75.55 per barrel.
- US equity markets posted mixed results Thursday as gains in several sectors were offset by pullbacks in shares of large technology companies such as Apple and Nvidia. The latter fell 1.2% a day after becoming the third American company to post a market value above $3 trillion. The Dow Jones Industrial Average added 78.84 points, or 0.2%, to close at 38,886.17. The Standard & Poor’s 500 eased 1.07 points, or 0.02%, to close at 5,352.96. The Nasdaq Composite dropped 14.78 points, or 0.09%, to close at 17,173.12.
- US dollar index reverted Thursday to a weakening trajectory.
- US gold prices advanced Thursday to a two-week high as weaker-than-expected US jobs data spurred hopes of a Federal Reserve interest rate cut later this year with focus shifting to non-farm payrolls data due Friday. The June contract was up $16.20 and closed at $2,370.30 per oz.
Source Link: https://www.foodbusinessnews.net/articles/7-brazilian-tax-change-sends-soy-corn-higher
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