Soybeans recover some ground but big Brazilian harvest looms

CANBERRA: Chicago soybean futures edged higher on Tuesday after falling in the previous session on lower-than-expected US crushing data, but the prospect of bumper South American production kept prices near four-year lows.

Soybeans edge higher, but Brazilian crop outlook caps gains

Corn futures also inched up, with traders expecting supply to tighten, while wheat was flat despite a huge Saudi purchase that lifted prices in Europe.

Fundamentals

• The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.2% at $9.83-1/2 a bushel at 0131 GMT, while corn inched up 0.1% to $4.45-1/2 a bushel and wheat was unchanged at $5.50 a bushel.

• The US soybean crush declined in November from an all-time high a month earlier and fell short of most trade estimates, data from the National Oilseed Processors Association showed.

• However, it was still the largest November crush on record, up 2.2% from a year ago, and the fourth-largest ever for any month.

• Favourable South American crop conditions and a lack of weather threats have pressured soy futures. Brazil’s 2024/25 planting is virtually complete, consultants AgRural said on Monday, predicting a harvest of 171.5 million metric tons.

• Brazil is the world’s largest soybean producer and exporter.

• In wheat, Euronext futures reached a seven-week high on Monday after Saudi Arabia’s buying agency purchased 804,000 tons of wheat in a tender, above the 595,000 tons it originally sought.

• The Saudi tender and reports of rising prices and slowing shipments in Russia put attention on a possible dwindling of Russian supply that flooded the market for much of this year.

• Cereal fields in Europe are generally in good condition after a dry, mild spell helped them recover from a soggy start to autumn, though grain belts around the Black Sea are lacking hardiness for winter, the EU’s crop monitoring service said.

• Commodity funds were net sellers of CBOT soybeans, soyoil and wheat futures contracts on Monday but net buyers of corn, traders said.