BEIJING: Chicago soybean futures slipped on Wednesday while corn traded flat, as rain forecasts for key grower Argentina eased concerns over dryness, with a lack of demand also weighing on the markets.
Wheat edged higher, supported by lower wheat ratings in Kansas, the top US winter wheat producer.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.1% at $9.96-2/8 a bushel by 0431 GMT, while corn was unchanged at $4.58.
“From a fundamental point of view, there is an expectation of rainfall in Argentina, which will help crops which have been parched after a particularly poor December in terms of rainfall,” said Andrew Whitelaw at agricultural consultants Episode 3 in Canberra.
Concerns over dryness had pushed prices higher earlier this week, but forecasts of rain over the next 11-15 days eased some worries about crop damage.
Weaker US corn and soybean export sales data and lower-than-expected December export projections for Brazil also weighed on the markets, said Cheang Kang Wei, assistant vice president at StoneX in Singapore.
“This lack of demand, particularly from major markets like China, where crushers are already heavily covered, has exerted significant downward pressure on prices,” he said.
Chicago soybeans, corn climb on Argentina weather concerns
The US Department of Agriculture’s (USDA) supply-and-demand report, due on Friday, is expected to show lower crop estimates for both the US and Argentina.
The most-active wheat contract rose 0.23% to $5.43-6/8 a bushel, also supported by a weaker dollar.
“With large global stocks and strong competition from other major exporters, wheat prices have faced considerable pressure,” Cheang said.
Market uncertainty surrounding US President-elect Donald Trump’s tariffs plans have caused a softening of the dollar from two-year highs in the previous week.
A weaker dollar can make US exports more attractive globally.
Jordan’s state grains buyer purchased about 60,000 metric tons of hard milling wheat to be sourced from optional origins in an international tender, traders said.
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