HAMBURG: Chicago soybeans hit their lowest in almost three months on Monday following falls last week, with crop-friendly rain improving harvest prospects in top exporter Brazil.
Corn fell as Brazil’s crop is also expected to benefit from rain. Wheat dropped on poor US export prospects. Chicago Board of Trade most active soybeans fell 0.4% to $12.51 a bushel at 1214 GMT after earlier on Monday hitting $12.50-1/2 a bushel, their lowest since Oct. 12. Corn fell 0.05% to $4.60-1/2 a bushel, again touching contract lows of $4.20 hit on Friday. Wheat fell 1.7% to $6.05-1/4 a bushel. Welcome has rain reduced concerns about soybean crop losses in Brazil with more rain forecast in Brazil this week.
“Soybeans and corn are being weakened by forecasts of more rain in Brazil,” said Matt Ammermann, StoneX commodity risk manager. “After dryness in Brazil in November and December, Brazil’s crop weather is improving and the debate will be about how much larger the crop will be.”
“We could see more increases in forecasts of the Brazilian soybean crop soon. With Argentina’s crop also looking fine, the stage is being set for a record large South American soybean harvest this year.”
“Corn is also being weakened by rain in Brazil, with the chances increasing that Brazil will achieve a decent corn crop.” US weekly export sales of soybeans, corn and wheat sales were below expectations.
“Wheat is being weakened by the firm trend in the dollar and the depressed outlook for US wheat exports,” Ammermann said. “There is disappointment that China did not buy more US wheat despite market talk about this last week.”
“Russian cash market prices are also low, in the mid $240s a ton. Sellers of Chicago wheat continue today to pressure the market to test the $6 a bushel level.”
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