HAMBURG: Chicago soybeans fell to their lowest in just over two years on Monday as more beneficial rain forecast in key producers Brazil and Argentina raised expectations of plentiful world supplies.
Corn also fell on the improving South American crop expectations. Wheat dropped in slack demand with few international purchase tenders issued, while Argentine wheat was approved for sale in China.
Chicago Board of Trade (CBOT) most active soybeans were down 0.7% to $12.00-1/4 a bushel at 1218 GMT after earlier touching $11.98, their lowest since November 2021.
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Corn was down 0.9% at $4.42 a bushel, remaining near three-year lows hit on Jan. 18 following recent crop-boosting rain in Brazil. Wheat was down 1.6% to $5.90-1/4 a bushel.
The Buenos Aires Grains Exchange last week raised its estimate of Argentina’s soybean and corn crops after helpful rain.
“Soybeans and corn are being pushed down today by favourable crop weather in South America, with rain forecast this week in both Brazil and Argentina,” said Matt Ammermann, StoneX commodity risk manager.
“Fear about weather in South America has gone which in turn leads to worry about lack of demand for U.S. soybeans and corn. Should soybean demand from China return in the near future, this is likely to be met with Brazilian supplies.”
Only relatively small wheat tenders from Jordan and South Korea have been issued so far on Monday, with the biggest Middle Eastern and North African importers absent.
China has also approved Argentine wheat imports for the first time.
“Low demand is depressing wheat, with the week starting with only few international purchase tenders in the market,” Ammermann said.
“China’s approval of Argentine wheat is a bearish factor for both U.S. and European wheat as it will create more competition in the Chinese market, which both U.S. and EU exporters want.”
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