PARIS/SINGAPORE: Chicago soyabean futures eased for a second session on Wednesday as the forecast for rain in Brazil tempered worries about dryness hurting harvest prospects in the world’s top soyabean exporter.
Corn and wheat futures also edged lower in cautious trading as investors awaited the outcome of the US Federal Reserve policy meeting, and sought more details on Argentina’s new economic policy after a steep devaluation was announced in the major crop-exporting country.
The most active soyabean contract on the Chicago Board of Trade (CBOT) was down 0.9% at $13.12-1/4 a bushel.
The contract had reached its highest in almost two weeks during Tuesday’s session, supported by dry conditions in Brazil and a run of US export sales.
But prices were then pressured by forecasts showing easing heat and greater chances of rain in central and northern Brazil in the week ahead.
“Rains are expected in dry areas of Brazil, which have taken out some of the weather premium from the market,” said one Singapore-based trader.
In Argentina, traders were watching to see if incoming President Javier Milei revises export taxes on grains after his government announced, on Tuesday, a massive currency devaluation to help tackle the country’s financial crisis.
The Fed’s policy meeting will be scrutinised for pointers as to when the central bank could begin cutting interest rates.
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