BEIJING: Chicago soybean futures slipped on Thursday, pressured by a stronger US dollar and easing concerns over dryness in key exporter Argentina, while investors looked for more clarity on US President-elect Donald Trump’s tariff plans.
Corn rose as traders repositioned ahead of a US Department of Agriculture crop report on Friday, while wheat gained after purchases from South Korea.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.28% at $9.92 a bushel, as of 0357 GMT, while corn edged up 0.11% to $4.54-4/8 a bushel.
The US dollar charged ahead on rising bond yields, following a report that Trump was considering the use of emergency measures to allow for a new tariff programme.
A stronger dollar makes US grains more expensive for buyers holding other currencies, thus less competitive overseas.
Traders were awaiting the US crop data for supply and demand insights.
Agricultural consultant Andrew Whitelaw of Episode 3 in Canberra noted that while the USDA report could prompt some market repositioning ahead, “a tight, range-bound market” was expected.
Chicago soybeans, corn climb on Argentina weather concerns
Market players were also monitoring weather developments in key South American growing regions, with rain forecasts for Argentina in mid-January dispelling dryness worries.
In Brazil, dry weather is limiting soybean development in the southernmost state, while heavy rains may disrupt early harvests in central regions, according to meteorologists.
Despite this, Brazil is anticipating a bumper soybean harvest.
StoneX forecast Brazil’s soybean production to reach 171.4 million metric tons in 2024/25, a 14.4% increase from the previous season.
“Argentina is dry, but unless major problems emerge in Brazil, the total South American crop is expected to be enough to keep global supplies elevated,” Bergman Grains Research said in a note.
The most-active wheat contract rose 0.23% to $5.38 a bushel.
Purchases from South Korean feedmakers lent support to the market, even as cheaper supplies from Argentina and the Black Sea region weighed on prices.
China will accelerate the breeding of new soybean and corn varieties and prioritise yield improvements for key grains and oil crops, as part of broad efforts to ensure food security, the agriculture ministry said late on Wednesday.
Comments
Comments are closed for this article.