HAMBURG: Chicago soybean futures hit their lowest in 14 months on Tuesday on expectations US farmers could complete plantings without serious disruption from excessive rain. Corn and wheat also dropped on overall positive outlooks for US crops.
Chicago Board of Trade most-active July soybeans fell 0.1 percent to $9.24-3/4 a bushel at 1014 GMT after dropping to $9.22-3/4 a bushel - the lowest since March 2016. Soybeans fell 1.4 percent on Friday and US markets were closed for the Memorial Day holiday on Monday.
July corn fell 0.9 percent to $3.70-3/4 a bushel, having gained 1.2 percent on Friday. July wheat fell 0.8 percent to $4.34-1/2 a bushel, having risen 1.9 percent on Friday.
US farmers are actively planting soybeans and if the weather remains favourable, prospects for a large US crop could put more downward pressure on prices.
"Soybeans are being weakened today by the overall decent weather in the US grain belts which could allow farmers to complete their soybean plantings," said Matt Ammermann, commodity risk manager at INTL FCStone. "The weather is also reasonable for the final stages of US corn sowings and for the early stages of the US wheat crop."
"We are still in a somewhat volatile weather-driven market. There had been fears on Friday going into the long holiday weekend in the United States about the possibility rain could disrupt US plantings of corn and soybeans."
"But as no new drastic weather fears have developed over the weekend, the market is now starting to expect more soybeans to be planted in the US Up to June the likelihood is that farmers will plant more soybeans than corn if they can."
"The markets had already been anticipating and increase in US soybean sowings and the probability of this being achieved is rising."
Record South American soybean harvests are also weighing on prices, with Brazil expected to accelerate sales.
"Weather for the wheat harvest now starting in the US is also reasonable with no disasters currently seen," Ammermann said. "However, the impact of the springtime snowstorms which hit US grain belts a few weeks ago is still unknown and markets will be closely watching the early harvest results and US crop condition reports due out at the end of today."
Argentina's government expects a record wheat crop of about 20 million tonnes thanks to farmers' investment in better seeds and fertilizers, a forecast that is above private estimates.
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