May 26, 2024

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Soybeans fall to seven-month low in US weather;  Wheat is declining

Soybeans fall to seven-month low in US weather; Wheat is declining

Chicago soybeans fell on Wednesday, trading at a seven-month low from the previous session, while corn anchored favorable weather and prices for the harvest in parts of the U.S. Midwest and fierce export competition.

Wheat futures fell for the second session.

Basics

* The most active soybean contract on the Chicago Board of Trade (CBOT) lost 0.2% to $13.61-1/4 a bushel by 0014 GMT, having hit its lowest point since Oct. 19 at $13.58-3/4 a bushel.

* Corn was down 0.4% to $5.79 a bushel and wheat was down 0.6% to $6.44-3/4.

* Strong US crop prospects put pressure on soybeans and corn. The U.S. Department of Agriculture last week forecast record harvests for both crops in 2023, with the U.S. corn crop on Monday 65% ​​planted and soybean planting 49% complete, well above their respective five-year averages.

* Weak export market demand contributed to the negative outlook, given huge soybean and corn harvests in rival supplier Brazil.

* For wheat, the market is closely watching negotiations on the extension of the Black Sea Grain Export Agreement.

* According to market sources, the agreement to allow sea exports from Ukraine will most likely be extended, but even Russia’s veto will not stop Ukrainian supplies to world markets – albeit at a higher price.

* Turkey, Ukraine, Russia and the United Nations have been negotiating ways to extend a July 18 agreement that allows safe exports of Ukrainian grain through the Black Sea, which expires on May 18.

* Soft wheat exports from the European Union for the 2022/23 season that began last July reached 27.17 million tonnes on May 14, up 12% from 24.33 million a year earlier, data released by the European Commission showed on Tuesday.

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Argentina will harvest 18 million tonnes of wheat in 2023/24, the Buenos Aires Grain Exchange forecast on Tuesday, up 45% from the 12.4 million tonnes harvested last season (2022/23).

* Commodity funds were net sellers of CBOT futures for soybeans, corn, soybean oil, wheat and soybean meal on Tuesday.

Market news

* U.S. stocks fell on Tuesday and government bond yields rose further as mixed economic data, weak corporate results and ongoing debt ceiling negotiations in Washington dampened investors’ risk appetite.

Data/Events (GMT, April) 0900 EU HICP Final MM, YY 1230 US Housing Starts Number (Reporting by Naveen Tughral; Editing by Uttaresh Venkateswaran)