CHICAGO: Chicago soybean futures ticked down on light post-holiday trading volume on Friday, as competitively priced Brazilian beans and favourable South American weather pressured the commodity, analysts said.
Wheat and corn futures also edged down, but corn received some support from the brisk pace of US exports. The most-active soybean contract on the Chicago Board of Trade finished 1-3/4 cents lower at USD10.45-3/4 a bushel, having hit its lowest point since October 23. Wheat settled 1/2 cent lower at USD5.06-1/2 per bushel, while corn ended 2-3/4 cents lower at USD4.37-1/2 per bushel.
Trading volume was down on Friday as many traders took an extra day off after the New Year holiday on Thursday, said Jim McCormick, co-founder of AgMarket.net, but fund liquidation caused some pressure. Meanwhile, McCormick said China was buying Brazilian beans.
“We are not competitively priced with Brazil, so the market is weakening on trying to get price-competitive with the Brazilians,” he said. He added that the weather in South America “probably couldn’t get much better for Brazil” while Argentina’s slightly drier conditions are expected to be relieved by rain in the near future. Brisk US export sales kept a floor under corn futures, said McCormick, as did the pace of the ethanol grind.
Earlier in the week, the USDA reported net export sales of US 2025-26 corn in the week ended December 18 at 2.2 million metric tons, topping a range of trade expectations for 1 million to 2 million tons. Regarding next month’s US Department of Agriculture supply and demand report, “I think the trade is leaning toward that corn crop getting a little bit smaller,” said McCormick, which would provide additional support.
Comments
Comments are closed for this article.