CANBERRA: Chicago soybean futures edged higher on Friday, but were on track for a fifth consecutive weekly loss after the contract dropped to two-year lows in the previous session due to expectations of plentiful supply.
Corn and wheat futures were flat, with both contracts poised for a weekly fall, and corn trading near three-year lows.
Ample supply holds Chicago soybeans near two-year low
All three contracts have fallen around 6% so far this month as rainfall in South America and higher-than-expected US inventories improve the supply outlook.
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The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.1% at $12.15-1/4 a bushel by 0118 GMT after falling to $12.01 on Thursday, its lowest since November 2021. The contract has lost 0.7% for the week.
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CBOT corn was unchanged at $4.44 a bushel after hitting $4.37 on Thursday, the lowest since December 2020. The contract has dropped 0.7% from last Friday’s close, and set for its sixth consecutive weekly decline.
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Wheat was flat at $5.85-1/2 a bushel after slipping to a seven-week low of $5.73-1/4 on Thursday. It was down 1.8% this week.
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U.S. exports and prices are under pressure from cheap and plentiful supply of Brazilian soybeans, Russian wheat and a strengthening dollar, which makes U.S. goods less attractive to importers.
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Some analysts have slashed their estimates for Brazil’s soybean crop, with Agroconsult predicting 153.8 million metric tons on Thursday, but drought fears have nevertheless reduced and bumper harvests are expected elsewhere in South America such as Argentina.
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Argentina’s soybean plantings are nearly complete for the current season, the Buenos Aires grains exchange said, noting significant moisture levels.
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Commodity funds were net buyers of Chicago corn, wheat and soybeans on Thursday, traders said. However, speculators still hold net short positions in all three.
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India’s corn exports have almost ground to a halt since December due to a rally in local prices on strong demand from the poultry and ethanol industry, dealers said.
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Consultancy Strategie Grains lowered its estimate for soft wheat production in the European Union this year by more than 2 million metric tons to 122.7 million tons, mainly due to a cut in Germany, where less area was sown.
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Wheat shipments via the Suez Canal fell by almost 40% in the first half of January to 0.5 million metric tons due to attacks in the Red Sea and Gulf of Aden, the World Trade Organization said.
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Ukrainian maritime grain exports are expected to fall by around 20% in January from the previous month due to the crisis in the Red Sea and the New Year holidays, a government official said.
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China approved additional varieties of genetically modified soybeans and corn while expanding their planting areas nationwide to improve food security and reduce imports.
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