Soyabean futures slipped more than one percent on Monday as a forecast for a rise in US acreage helped to trigger a setback following recent strong gains while corn turned lower and wheat trimmed gains as the market eyed the euro zone debt crisis.
"I think the key factor weighing on (soya) prices today is estimates of higher acres in the US," said Ker Chung Yang, a commodities analyst at Phillip Futures in Singapore.
Analytical firm Informa Economics on Friday raised its forecast of US 2012 soyabean seedings to 77.0 million acres from its previous projection of 75.8 million, according to trade sources. "Those (Informa estimates) did show a move up in terms of soyabean acreage and I think that is weighing a bit on prices," Barclays Capital analyst Sudakshina Unnikrishnan said.
Informa also lowered its forecast of US 2012 corn plantings to 93.1 million acres (37.7 million hectares) from its previous forecast of 94.3 million. Chicago Board of Trade November soyabeans fell 14-3/4 cents or 1.2 percent to $12.55-1/4 a bushel by 1128 GMT. Prices had rebounded strongly after the front month slid to a low of $11.52 earlier this month.
Soyabeans derived support from a lower-than-expected government forecast for US ending stocks and talk that Chinese imports could climb on positive crush margins on strong demand from the livestock industry. "Soyabeans rose sharply last week and there could be some profit taking now as Chinese buyers are absent from the market," Ker Chung Yang of Phillip Futures said.
Wheat futures were slightly higher but early gains were trimmed following remarks from Germany that the forthcoming EU summit would not produce a definitive solution to the euro zone debt crisis. Prices had risen early as hopes for a resolution to the euro zone debt crisis prompted broad-based strength in commodity and many other financial markets.
"I think the big driver is going to remain the macro picture," Unnikrishan of Barclays Capital said, noting the economic outlook remained very uncertain. December CBOT wheat rose 2 cents or 0.3 percent to $6.24-3/4 a bushel, well below the day's high of $6.35-1/4.
November milling wheat in Paris stood 0.25 euros or 0.1 percent higher at 185.00 euros a tonne. Weekly US export sales helped to underpin prices of both wheat and corn. The USDA's weekly export sales report showed net US corn export sales last week at a three-month high, wheat at a three-week high. "I think that is providing a bit of spillover support," Unnikrishnan said. Corn prices turned lower, tracking a setback in crude oil and some other commodity markets after the German remarks. December corn stood 1 cent lower at $6.39 a bushel after earlier rising to a peak of $6.47.