US soybeans futures fell to a three-week low on Wednesday as forecasts for rain in dry areas of Argentina's crop-belt took out some of the weather premium built into the market, traders said. Wheat and corn futures also weakened, but declines were kept in check by investors looking to unwind bearish bets they have placed on the grain. The market moves were muted as traders awaited the conclusion of the US Federal Reserve's two-day policy meeting. Analysts expected the central bank to raise interest rates for the first time in a year.
At 10:01 am CST (1601 GMT), Chicago Board of Trade January soyabean futures were down 3 cents at $10.25 a bushel. Prices bottomed out at $10.20-3/4 a bushel earlier in the session, the lowest for the most-active contract since falling to $10.17-1/4 on November 23. The Argentine rain outlook boosted crop prospects from the key exporter. The United States already faces fierce competition for overseas deals from South America, with a huge crop expected in Brazil.
Brazil's Abiove on Wednesday forecast that the country will produce 101.7 million tonnes of soyabeans in the 2016/17 crop year, with 58 million tonnes of the crop expected to be exported. But strong domestic demand limited the sell-off in soyabeans. The National Oilseed Processors Association (NOPA), the largest US trade group for the industry, is expected to report that its members crushed 162.568 million bushels of soyabeans in November, up 4.1 percent from a year earlier. If realised, that would be the busiest November ever and the seventh-largest monthly crush on record. CBOT March soft red winter wheat was down 1-1/2 cents at $4.16 a bushel. Traders shrugged off concerns about sub-freezing temperatures damaging the dormant crop. CBOT March corn was 1-3/4 cents lower at $3.59-1/4 a bushel.