Soybean futures fall on ample global supply, firmer dollar

BEIJING: Chicago Board of Trade soybean futures fell on Monday, pressured by ample global supplies and the dollar’s strength, which made US exports less competitive in international markets.

Wheat and corn futures also traded lower.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.8% at $10.55-3/4 a bushel, as of 0452 GMT, with CBOT wheat down 1.2% at $5.31-3/4 a bushel and corn trading 0.8% lower at $4.25 a bushel.

The dollar clung to its gains on Monday as investors weighed what the US Federal Reserve under Kevin Warsh might look like, with his preference for a smaller balance sheet.

President Donald Trump on Friday chose Warsh to head the US central bank when Jerome Powell’s term ends in May Investors view Warsh as more hawkish on interest rates than other candidates for the post.

Market jitters over Trump’s policymaking, including his criticism of the Fed, had fuelled the dollar’s recent slide.

It led grains and oilseed prices to climb to multi-week highs, even as ample global supply capped gains.

In South America, Brazil is in the early stages of harvesting what is forecast to be a record soybean crop.

Traders expect China to turn mainly to Brazil for imports in the coming months after a recent wave of US soybean purchases.

Rains across key agricultural regions in western Argentina improved soil moisture conditions, yet soy and corn crops will still need more rainfall in the coming weeks to avoid yield losses, the Buenos Aires Grain Exchange said on Thursday.

Chicago wheat also drew support from bouts of severe cold in the wheat belts of the US and the Black Sea region, though snow cover helped protect crops from winterkill in many areas.

Traders are also monitoring forecast of deep frost in Ukraine this week that could cause crop damage.