SINGAPORE: Chicago soybean futures fell on Wednesday, shedding gains from the previous session, with forecasts of more rains in Brazil this week likely to further improve the maturing oilseed crop.
Wheat and corn lost ground with investors in agricultural markets focussed on key US reports on Friday for a price direction.
“We are in weather market as far as soybeans are concerned,” said one Singapore-based oilseed trader.
“Brazilian weather looks good for now with rains expected this week. But it going to turn dry after that.”
The most-active soybean contract on the Chicago Board of Trader (CBOT) was down 0.3% at $12.44-3/4 a bushel, as of 0338 GMT, after closing marginally higher on Tuesday. Wheat fell 0.4% to $6.07-3/4 a bushel and corn gave up 0.1% to $4.58-3/4 a bushel.
Weather charts pointed to more rain in a swathe of Brazil this week before drier conditions return next week.
Recent rains have eased concerns over dryness, which had been threatening soybean crop yields in Brazil, the world’s No. 1 exporter of the oilseed.
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Parana state, which will likely be Brazil’s third-largest soybean producer in the 2023/2024 season, is still facing the prospect of lower yields amid dry and hot weather in key areas, some of which are already being harvested.
Traders in the market are adjusting positions before the US Department of Agriculture (USDA) issues quarterly US grain stocks data and a monthly report on global supply and demand on Friday, analysts said.
Brazilian statistics agency Conab is due to update its official forecasts this week while the USDA will release its data on Friday.
Large parts of southern and eastern Australia saw above average rainfall in December, causing flooding in some areas but helping many farmers, while western areas remained parched, the country’s weather bureau said on Tuesday.
Commodity funds were net buyers of CBOT wheat, corn, soybean and soyoil futures contracts on Tuesday, traders said. Funds were net even in soymeal futures, they said.
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