SINGAPORE: Chicago soybeans eased on Friday and the market was on track for a second consecutive weekly drop on expectations of large harvests in South America, although strong demand from top buyer China limited losses.
Corn was set to end the week firmer amid expectations of lower US production, while wheat edged higher.
Most-active Chicago Board of Trade (CBOT) soybean futures were down 0.3% at $13.55-3/4 a bushel, as of 0213 GMT, and lost 1% so far this week.
Corn was unmoved at $4.86-1/4 a bushel, but gained 1% for the week.
Wheat climbed 0.2% to $6.00-3/4 a bushel and was up 0.8% this week.
Expectations of higher output in Argentina and Brazil is weighing on CBOT futures, but strong Chinese demand limited losses.
“The latest Chinese trade data show that China’s soybean imports rose 31% to 9.36 million tons in August as domestic crushers continue to take advantage of cheaper supplies from Brazil,” ING said in a note.
The Buenos Aires grains exchange on Thursday forecast Argentina’s 2023/2024 soybean crop at 50 million metric tons, more than double last year’s level and the most for five years.
That came a day after Brazilian food supply agency Conab said Brazil should produce a record 154.6 million tons of soybeans and export almost 97 million tons in the 2022/23 cycle.
CBOT soybeans rose in August as hot and dry weather in the United States, another major exporter, damaged crops at a crucial stage of their development.
But prices have fallen 3.5% from a one-month high of $14.10 a bushel reached on Aug. 28.
Analysts expect this month’s US Department of Agriculture (USDA) estimates, due on Tuesday, will show smaller US soybean and corn harvests than were predicted in August.
Turning to corn, the Buenos Aires grains exchange forecast an Argentinian harvest of 55 million tons, the second highest on record and up from 34 million tons the year before.
Ample supply has kept corn prices near three-year lows despite a decline in the condition of US crops.
In the Black Sea region, Ukraine said on Thursday Russia had carried out its fourth drone attack in five days on Ukrainian port facilities on the Danube River, damaging grain silos.
Ukrainian grain traders union UGA, however, said exports through the Romanian Black Sea port of Constanta could increase to 35 million metric tons per season, and a Ukrainian official said Ukraine had started exporting via Croatian seaports.
Commodity funds were net sellers of CBOT wheat, soybean, soyoil and soymeal futures contracts on Thursday, traders said. Funds were net buyers of CBOT corn.
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