Stocks and Oil Prices Increase, Soy Market Reaches High
- 21-Mar-2023 4:31 PM
- Journalist: Stella Fernandes
MEXICO CITY: On Monday, Chicago Board of Trade soy futures rallied from a three-month low to close higher due to a tailwind from U.S. stocks on the announcement of UBS buying its rival Credit Suisse. A surge in oil prices further pushed up Soybean prices, which are heavily used for biodiesel and Ethanol production. The contract closed at $14.86 per bushel after hitting its lowest price since December 20th ($14.62).
Wheat and Corn futures dropped on the news that a sea export agreement allowing grain from Ukraine to reach global buyers has been extended for at least 60 days. Initially, there was hope the renewal of the safe Black Sea shipping corridor would be extended by 120 days, but after Russia stated that any further extension beyond mid-May would require some Western sanctions to be lifted, negotiations resulted in the shorter duration.
Russian President Vladimir Putin has promised to provide grain to African countries for free in the event the grain deal is not renewed by May. Meanwhile, markets remain on edge ahead of the Federal Reserve's decision on Wednesday which could potentially change the benchmark overnight interest rate. As traders, especially small traders, wait in anticipation for the Fed's announcement, they are closely monitoring external markets such as crude oil prices, bond markets and the US dollar for possible signs of a reaction.