SINGAPORE/PARIS: Chicago soyabean futures edged higher on Friday, but the market was on track for a third weekly decline as much needed rains across Brazil and forecasts for more wet weather eased concerns over yield losses.
Wheat prices firmed but were poised to end the first week of 2024 in negative territory.
The most-active soyabean contract on the Chicago Board of Trade (CBOT) is down 2.6% this week, its biggest weekly drop since late September. Corn has given up 1% this week, while wheat is down almost 2%. Soyabeans were down 0.3% at $12.64 a bushel as of 1214 GMT on Friday, corn was down 0.1% to $4.66 a bushel and wheat was up 0.3% to $6.15-1/4 a bushel.
Rains over the past several days across Brazil’s oilseed growing regions have reduced concerns about crop losses in the world’s biggest soyabean exporter. Stabilizing crop yields in South America could prevent buyers in the world market from shifting export business to the US from Brazil.
Later on Friday, the US Department of Agriculture (USDA) is scheduled to issue US grain and soyabean export sales data for the week ended Dec. 28.
The market is also waiting for the USDA to issue quarterly US grain stocks and monthly supply/demand reports on Jan. 12.
In other news, the US Energy Information Administration said weekly production of corn-based ethanol fell in the latest week to 1.049 million barrels per day, retreating from a two-year high. Stockpiles rose to 23.579 million barrels, the most since April.
The United Nations food agency’s world price index ended last year about 10% below its level a year earlier, with values in December also down from the previous month, helping further ease concerns over global food price inflation.
Commodity funds were net sellers of CBOT soyabean, soyameal and soyaoil futures contracts on Thursday, traders said. Funds were net buyers of CBOT wheat and corn.
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