Chicago Board of Trade soyabean futures fell to a two-month low on Friday as the ongoing harvest of a projected record-large Brazilian soya crop threatened US export prospects, traders said. Corn and wheat followed the weak trend, despite a setback in the US dollar. At 11:15 am CST (1715 GMT), CBOT May soyabean futures were down 6-1/2 cents at $10.04-1/2 per bushel after dipping to $10.03, the contract's lowest since January 9.
CBOT May corn was down 3-3/4 cents at $3.63-1/4 a bushel after touching $3.63-3/4, its lowest since January 30. May wheat fell 1-1/2 cents to $4.42-1/2 a bushel. The soya market was still absorbing revised South American crop estimates. The US Department of Agriculture on Thursday raised its forecast of Brazil's soyabean crop to a record 108 million tonnes, from 104 million last month.
Brazilian agricultural statistics agency Conab on Thursday raised its estimate for the country's 2016/17 soyabean crop to 107.6 million tonnes, more than 2 million tonnes above its previous forecast. CBOT corn was on track for its fifth straight daily decline, pressured by ample world supplies. The USDA raised its forecast of global 2016/17 corn ending stocks to 220.68 million tonnes, above the average trade estimate and up from 217.56 million last month.
Commodity funds have held net long positions in CBOT soyabean and corn futures in recent weeks, leaving both markets vulnerable to long liquidation. Wheat futures drifted lower, with the May contract slipping below its 50-day moving average. However, cold weather may threaten portions of the Midwest winter wheat crop next week.
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