Soybeans, corn down for second session on improved Argentine weather

SINGAPORE: Chicago soybean and corn futures slid for a second session on Thursday, as forecasts of much-needed rains in Argentina’s crop belt eased some of the supply concerns resulting from a severe drought in the South American country.

Wheat lost more ground, although a slow pace of exports from the Black Sea region offered some support to the market.

“A combination of a wetter forecast for Argentina and a drier forecast for central Brazil helped spark more aggressive selling,” Hightower said in a report.

“Crops (in Argentina) are already under stress, so more damage is likely in the next couple of days, but traders are counting on good rains over the next 10 days for Argentina, and drier weather for Brazil which could ease excess moisture concerns and could support more harvest.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.2% to $15.21-1/4 a bushel, as of 0154 GMT, and corn lost 0.4% to $6.78-1/2 a bushel.

Wheat fell 0.7% to $7.37-1/2 a bushel. Forecasts of rains in Argentina’s drought-hit growing areas could provide to relief to crops.

Brazil, the world’s biggest soybean exporter, is on track for an all-time high crop.

Brazil’s 2022/23 summer grain production will outgrow total storage capacity for the first time in 20 years amid expectations of record soybean harvest, according to government data obtained by Reuters from Conab, the food supply and statistics agency.

Soybean hits 7-month high on Argentina supply concerns

Agricultural markets drew support from optimism about an economic upturn in China, as investors looked beyond disappointing 2022 growth and anticipated a rebound in activity with the easing of COVID-19 restrictions.

China is by far the world’s biggest soybean buyer.

The United Nations on Wednesday called out inefficiencies in the operation of a deal allowing Ukraine Black Sea grain exports, but did not lay blame for a backlog of more than 100 ships in Turkish waters waiting on travel approval and inspections.

Commodity funds were net sellers of CBOT wheat, soybean, corn and soymeal futures contracts on Wednesday and net buyers of soyoil futures, traders said.