2023-11-16 05:19:59
Soybean prices in Chicago fell Thursday from a two-and-a-half month high reached in the previous session as an improving weather outlook in major South American exporting countries such as Brazil eased supply-side concerns.
Corn prices rose slightly despite forecasts of rain in Brazil and Argentina. Wheat futures fell due to abundant short-term supply.
“The market will be watching the weather conditions over the next few days to see if the promised rains arrive,” said Andrew Whitelaw of Australian agricultural consultancy Episode 3.
Traders will also be watching talks between Joe Biden and Xi Jinping in San Francisco, as China’s large purchases of US soybeans in recent days have helped push up prices, he added.
The most active soybean contract on the Chicago Board of Trade (CBOT) was down 0.1% at $13.83 a bushel at 0454 GMT, following hitting $13.98-1/2, its highest on Wednesday. high level since August 30.
CBOT corn rose 0.2% to 4.71-3/4 a bushel and wheat fell 0.3% to 5.58-3/4 a bushel.
Soybeans have risen 11% since their low in mid-October as hot, dry weather in the main growing areas of Brazil, the world’s top soybean exporter, disrupted plantings, but rain is forecast in these regions next week and global supply remains abundant.
Rabobank analysts said they expected a bumper crop of 163 million tonnes in Brazil in 2024 and that Argentina, the largest exporter of soy products, was expected to recover following the failure of last year’s harvest, which would increase global stocks.
Argentina’s agricultural heartland experienced well-above-average rainfall during the first half of November and is expected to see even more humidity in the days to come, according to the Rosario Grain Exchange (BCR) .
Soybeans were also supported by strong demand in the United States.
U.S. soybean processors crushed a record amount of soybeans in October and soybean oil stocks at the end of the month fell to their lowest level in almost nine years, according to data from the National Oilseed Processors Association ( NOPA).
On wheat, FranceAgriMer raised its forecast for French soft wheat exports outside the EU in 2023/24 to 10.1 million metric tonnes and also raised its end-of-season stock estimates to their highest level in six years, which put pressure on local prices.
Ukraine’s state railways said it had restricted grain deliveries to Odessa, a key Black Sea port, due to repairs. She did not say when the restrictions would be lifted.
The market has been flooded with cheap Russian wheat in recent months, but Rabobank said it expected a fifth consecutive global deficit next year as Argentina’s harvest fell short and l Australia delivering much less wheat than in recent years.
Commodity funds were net sellers of CBOT soybean, soybean meal, wheat and corn futures on Wednesday, and net buyers of soybean oil, according to traders.
The U.S. Department of Agriculture (USDA) is scheduled to release a weekly report on U.S. export sales at 7:30 a.m. CST (1330 GMT) on Thursday. (Reporting by Peter Hobson; Editing by Sherry Jacob-Phillips and Nivedita Bhattacharjee)
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