US soyabean futures fell about 2 percent on Thursday, with the new-crop November contract dropping below $10 a bushel for the first time in two months, on favorable crop weather and fund-driven long liquidation, analysts said. Corn futures followed soyabeans lower while wheat rose, supported by poor weather in several global production areas that threatens to tighten world stockpiles.
As of 12:50 p.m. CDT (1750 GMT), Chicago Board of Trade July soyabeans were down 20 cents at $9.74-1/4 per bushel and new-crop November, representing the newly planted US crop, was down 19 cents at $9.94-1/2 a bushel. CBOT July corn was down 2-1/2 cents at $3.75-3/4 a bushel while July wheat was up 5-1/4 cents at $5.25 a bushel.
Soyabeans and corn sagged as forecasts for beneficial rains in the US Midwest through early next week bolstered production prospects. Crops are already off to a good start, with the US Department of Agriculture this week rating 75 percent of the US soyabean crop and 78 percent of the corn in good to excellent condition. Soyabeans faced additional pressure from weakness in the Brazilian real, which may encourage Brazilian farmers to sell more of their record-large 2018-2019 soyabean harvest.
The Brazilian currency's devaluation versus the dollar boosts returns in farmers' local currency. The real hit a two-year low Thursday on concerns over the nation's fiscal outlook. Brazilian growers have so far sold 73 percent of the 2017-18 soya crop, far ahead of sales at this period last season, agricultural consultancy Datagro said Wednesday.
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