SINGAPORE: Chicago soybean futures declined on Thursday, as rains across Argentina’s farm belt boosted crop prospects, easing concerns about supply disruptions resulting from a severe drought. Wheat lost ground after two days of gains, as snowfall in US Plains improved prospects for the winter crop.
“Most of Argentina will get rain at one time or another in the next 10 days, though the precipitation will be most frequent and significant in west-central and northwestern crop areas,” said Terry Reilly, a senior analyst at Futures International. The most-active soybean contract on the Chicago Board of Trade (CBOT) slid 0.1% to $15.01-3/4 a bushel, as of 0325 GMT.
Wheat gave up 0.3% to $7.39 a bushel and corn lost 0.1% to $6.73-3/4 a bushel. Rains across Argentina’s drought-hit soybean-growing areas in recent days have eased fears of crop losses. Soybean sales from Argentina’s 2021/2022 harvest covered 80.6% of the 44 million tonne harvest, as of last week, below the 82.6% sold from the previous season at the same time, data from its agricultural ministry showed Wednesday.
Around 94% of Russia’s winter crops are in a good or satisfactory condition, Russia’s agriculture ministry said. India will provide 3 million tonnes of wheat to bulk consumers such as flour millers, as part of efforts to bring down prices, which jumped to a record high on Wednesday, a government official told Reuters.
The allocation is more than traders’ expectations of around 2 million tonnes. The market was waiting for government permission for nearly two months as supplies dwindled at the tail end of the wheat marketing year even as demand surged. Commodity funds were net buyers of CBOT soybeans, wheat and soymeal futures contracts and net sellers of corn and soyoil futures, traders said.