US soybeans fall for second session, wheat down - CBOT
Lack of demand impacting futures
10 January 2023
2 minute read
By: Chicago soybean futures lost more ground on Tuesday, with a lack of demand for US supplies weighing on the market, although losses were limited by dry weather curbing yields in key supplier Argentina, reported Reuters.
Wheat fell for a third consecutive session while corn slid.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.3% at $14.84-3/4 a bushel, as of 0113 GMT, wheat gave up 0.2% to $7.39-3/4 a bushel and corn Cv1 fell 0.2% to $6.51-1/4 a bushel.
The US Department of Agriculture (USDA) on Monday reported weekly grain export inspections for corn, soybeans and wheat near the low-end of a range of trade estimates. US exports have struggled to compete in the global market with cheaper South American supplies.
The market is cautious ahead of Thursday's global crop supply-and-demand estimates from the USDA. In the report, the USDA is expected to cut its corn and soy production outlook for drought-hit Argentina but also raise its estimate of US grain and soybean supplies.
Grain traders are also monitoring developments in Brazil, where supporters of far-right former President Jair Bolsonaro stormed government buildings on Sunday.
The Brazilian real weakened against the dollar on Monday, making the country's crop exports even more affordable than US supplies on the global market.
Harvesting of Brazil's 2022/2023 soybean crop had reached 0.04% of the national planted area on Thursday last week, compared with 0.2% in the year-ago period, agribusiness consultancy AgRural said on Monday.
The consultancy cited disruption to field work because of wet conditions in states including top soybean grower Mato Grosso.
In the Black Sea region, Ukraine has exported almost 23.6 million tonnes of grain so far in the 2022/23 season, down from the 33.5 million tonnes exported by the same stage of the previous season, agriculture ministry data showed on Monday.
Commodity funds were net sellers of CBOT corn, wheat, soybean and soymeal futures contracts on Monday and net buyers of soyoil futures, traders said.
World stocks rallied on Monday to their highest levels since mid-December after China reopened its borders while benchmark Treasury yields drifted lower as investors scaled back expectations for further rate hikes by the Federal Reserve.
