Soybeans drop to 1-week low, corn down for 3rd session on US harvest

SINGAPORE: Chicago soybean futures lost more ground on Tuesday to hit their lowest in a week, while corn slid for a third straight session as rapidly advancing US harvests weighed on prices.

Wheat prices eased after closing marginally higher on Monday.

“The soybean market is coming under seasonal harvest pressure in the United States,” said one Singapore-based trader.

“Chinese demand is a bit subdued which is also putting pressure on prices.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.2% at $12.84-1/2 a bushel, as of 0305 GMT, after dropping earlier in the session to $12.82-1/4 a bushel, the lowest since Oct. 16. Corn fell 0.3% to $4.88-3/4 a bushel and wheat gave up 0.6% to $5.83-1/2 a bushel.

US farmers had harvested three-quarters of their soybean crop and 59% of their corn by Sunday, according to weekly data from the US Department of Agriculture (USDA) released on Monday.

Brazil’s 2023/24 soybean planting

The figures, roughly in line with trade expectations, were ahead of the five-year average pace for each crop.

In Brazil, if expected rains come this week, it will improve prospects for soy farmers who have been sowing their new crop at a slower pace in unusually hot and dry weather, experts said.

Heavy rains in Argentina drenched drought-hit agricultural regions over the weekend, which could benefit wheat crops ahead of harvesting and also boost corn planting.

Russian wheat export prices declined again last week, but analysts see demand picking up at these levels.

The price of 12.5%-protein Russian wheat scheduled for free-on-board (FOB) delivery in the latter part of November was $224 per metric ton last week, down $1 from the week before, the IKAR agriculture consultancy reported.

Agricultural producers in Ukraine say a new Black Sea corridor could enable exports of up to 2.5 million metric tons of food a month, almost offsetting the impact of Russia’s decision to quit a UN-brokered deal to allow grain shipments through the region.

The USDA’s weekly report showed US winter wheat planting was 77% complete, compared to analysts’ estimates for 79%.

Commodity funds were net sellers of CBOT corn, soybean, soymeal and soyoil futures contracts on Monday, and net buyers of wheat futures, traders said.