SINGAPORE: Chicago soybean futures lost more ground on Wednesday, with forecast of rains in parts of Brazil’s dry oilseed-producing areas easing concerns over dry weather conditions hurting the newly planted crop.
Corn and wheat futures slid.
“Rains are expected in dry areas of Brazil, which have taken out some of the weather premium from market,” said one Singapore-based trader.
“Prices will come down further if Brazilian weather continues to improve.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.2% at $13.21-1/4 a bushel, as of 0411 GMT.
Corn lost 0.2% to $4.84-1/4 a bushel and wheat slid 0.1% to $6.24-3/4 a bushel.
Heat and dryness have hurt crops in northern and central parts of Brazil, but analysts said some forecasts on Tuesday looked wetter than previous outlook.
Brazil’s 2023/24 soybean planting hits 91pc
Brazil is the world’s biggest soybean exporter, and dryness in recent weeks has raised crop concerns and prompted China to book larger volumes from rival supplier - the United States.
The US Department of Agriculture (USDA), in a daily announcement, confirmed sales of 198,000 metric tons of US soybeans to unknown destinations.
It was the fifth consecutive session in which the USDA reported a daily US soy sale to China or unknown destinations.
France is expected to see a sharp fall in the sowing of winter cereals after heavy rain disrupted field work in the European Union’s largest grain producer, the farm ministry said on Tuesday.
Commodity funds were net buyers of CBOT wheat and corn futures contracts on Tuesday and net sellers of soybean, soyoil and soymeal futures, traders said.
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