HAMBURG: Chicago soybeans and crop fell on Monday with more rain forecast for dry crops in Brazil, although robust demand for US soy supplies limited falls.
Wheat dropped with US export prospects looking difficult against competition from cheap rivals including Russia. Chicago Board of Trade most-active soybeans fell 0.1% to $13.14-1/2 a bushel at 1214 GMT. Wheat fell 0.9% to $6.23-1/4 a bushel, corn fell 0.2% to $4.81-3/4 a bushel.
Prospects for Brazil’s soybean crop are in focus, where forecast rain could ease dryness stress. “Soybeans and corn down today because of forecasts of more rain for dry crops in Brazil,” said Matt Ammermann, StoneX commodity risk manager. “Some Brazilian soybean areas have received only around one-third of their normal rain this season, but markets do not seem to care much and are taking the view that the spasmodic rain in the forecasts could be enough for a decent Brazilian crop.”
“US soybean export sales also remain strong, but importers seem to be waiting to see how the Brazilian crop will turn out. Brazil new crop is expected to dominate the world market anyway from February.” Big US soybean export sales were made to buyers including China.
Plentiful world wheat supplies, particularly from Russia, are weakening prices, with Russia expected to supply a substantial part of a hefty 1.35 million tons bought by Saudi Arabia on Monday along with EU suppliers.
“Wheat is being weakened because of slow demand for US supplies, with US wheat likely to be too expensive for large Saudi Arabian purchase on Monday, with the Saudi purchase likely to be largely sourced from Russia and the EU,” Ammermann said.
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