PARIS/SINGAPORE: Chicago soybeans edged lower on Wednesday to touch a new seven-month low, pressured by favourable crop prospects in the U.S. Midwest and doubts over export demand.
Wheat was slightly higher, underpinned by poor harvest prospects for U.S. winter wheat and uncertainty over a deal allowing grain shipments from Ukraine as a Thursday deadline loomed.
Corn was mixed.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.3% at $13.60-1/4 a bushel, as of 1034 GMT, after earlier touching its lowest since October for a second straight session.
Soybean, corn prices under pressure on US supply outlook
The most active CBOT corn contract gave up 1.0% to $5.75-1/4 a bushel, though other positions were marginally higher.
CBOT wheat added 0.7% to $6.51-3/4 a bushel.
Strong U.S. crop prospects have pressured soybeans and corn, with spring planting progress adding to supply pressure created by the U.S. Department of Agriculture’s projection on Friday of record U.S. harvests of both crops in 2023.
Weak demand in the export market added to the bearish outlook.
Consultancy Agritel said “the pressure of the Brazilian harvest” was weighing on the U.S. market.
“At the same time, weather conditions remain generally favourable in the Corn Belt, putting pressure on soybean and corn prices,” it said in a note.
Grain markets are waiting for an announcement on whether the Black Sea grain deal will be renewed beyond a May 18 deadline.
The Kremlin, which has repeatedly warned it will quit the agreement unless its demands regarding its grain and fertiliser exports are addressed, declined on Wednesday to comment on the possible outcome.
Many in the market still believe the deal will most likely be renewed and that even a veto by Russia would not stop Ukrainian supplies reaching global markets, albeit at a greater cost.
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