CHICAGO: Chicago Board of Trade soybean futures surged by about 6% on Friday after the US Department of Agriculture (USDA) reported much lower-than-expected 2023 soy plantings and June 1 inventories, traders said.
CBOT August soybeans settled up 74-1/4 cents at $14.42 per bushel, and most-active November soybeans ended up 77-1/2 cents, or 6.1%, at $13.43-1/4.
Most CBOT soyoil contracts closed up the 4-cent daily limit, with August up 4 cents at 61.70 cents per lb and most-active December up 4 cents at 58.97 cents. CBOT August soymeal rose $17 to settle at $413.90 per short ton.
The CBOT said daily trading limits for soybean, soymeal and soyoil futures will expand for Monday’s trading session. The USDA said US farmers planted 83.5 million acres of the oilseed, down 4 million acres from the government’s March forecast and below the lowest in a range of analyst estimates. The USDA reported US June 1 soybean stockpiles at 796 million bushels, down 18% from a year ago and below most trade estimates. The USDA confirmed private sales of 132,000 metric tons of US soybeans to China for delivery in the 2023/24 marketing year that begins Sept. 1, 2023. The CBOT reported no deliveries against July soybean or soymeal futures on first notice day, while July soyoil deliveries totalled 122 contracts, all in line with trade expectations.
CBOT WHEAT HITS
2-WEEK LOW
Chicago Board of Trade wheat futures closed lower on Friday, with the benchmark September contract hitting a two-week bottom as corn futures tumbled on larger-than-expected US corn plantings, traders said.
CBOT September soft red winter wheat settled down 16-1/2 cents at $6.51 per bushel after hitting $6.46, the contract’s lowest since June 15. KC September hard red winter wheat ended steady at $8.00 per bushel while MGEX September spring wheat fell 8-1/2 cents to settle at $8.17 a bushel.
CBOT wheat shrugged off support from a smaller-than-expected June 1 stocks number. The US Department of Agriculture reported June 1 wheat stocks at 580 million bushels, down 17% from a year ago and below an average of analyst expectations for 611 million.
The USDA reported US all-wheat seedings for 2023 at 49.628 million acres, down from its March 31 estimate of 49.855 million but roughly in line with trade expectations. The USDA lowered its winter wheat plantings estimate to 37.0 million acres, from 37.5 million in March, but raised its spring wheat plantings estimate to 11.140 million acres, from 10.570 million in March.
On the global front, Russia said it saw no reason to extend the United Nations-brokered Black Sea grain deal beyond July 17, but assured poor countries that Russian grain exports would continue. Wheat exporters in the European Union are facing a tougher start to the new season as massive supplies of cheaper Russian grain mop up international demand, traders said.
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