MARKET DEVELOPMENT
Soybeans Resume Rise With South America Crops In Focus
Soybeans Resume Rise With South America Crops In Focus
09.02.2022 (www.agriculture.com) - PARIS/SINGAPORE, Feb 9 (Reuters) - Chicago soybean futures headed back toward an eight-month peak on Wednesday as the market awaited a U.S. government report for a latest indication on weather damage to South American crops.
Corn edged up and wheat ticked lower while investors adjusted positions before the U.S. Department of Agriculture’s (USDA) world supply and demand forecasts later on Wednesday.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.8% at $15.80¾ a bushel by 1228 GMT, trading near Monday's eight-month high of $15.89½.
Crop watchers have been scaling back forecasts for Brazil and Argentina’s soybean harvests after drought, raising the prospect that some international demand will shift toward U.S. supplies. Analysts at hEDGEpoint Global Markets said on Wednesday they had cut their outlook for Brazil’s soybean crop by about 5 million tonnes to 133.3 million tonnes. “South American weather is the focus right now,” said Phin Ziebell, agribusiness economist at National Australia Bank. “Crop losses can send prices higher.” Brazil is now expected to export 7.5 million tonnes of soybeans in February, industry group ANEC said on Tuesday, down from 9.923 million tonnes projected a week earlier.
A run of U.S. export sales has underscored expectations that shipments from the United States will pick up. A sharp rise in palm oil, which competes with soy oil in vegetable oil markets, also supported soybeans as traders reacted to Indonesian export restrictions.
CBOT corn added 0.6% to $6.36 a bushel and wheat edged down 0.3% to $7.76¼ a bushel.
The corn market is also awaiting the USDA’s estimates on South American supply, as well as any adjustments to Chinese demand.
Wheat found support on Tuesday from a lower-than-expected official estimate of Canada’s stocks, but global export competition and normal activity in Black Sea markets, despite geopolitical tensions over Ukraine, were capping prices.
Prices at 1228 GMT Last Change Pct End Ytd Pct Move 2021 Move CBOT wheat 776.25 -2.50 -0.32 770.75 0.71 CBOT corn 636.00 3.75 0.59 593.25 7.21 CBOT soy 1580.75 11.75 0.75 1339.25 18.03 Paris wheat 263.00 -1.50 -0.57 278.50 -5.57 Paris maize 251.50 0.00 0.00 226.00 11.28 Paris rape 685.00 8.00 1.18 754.00 -9.15 WTI crude oil 89.01 -0.35 -0.39 75.21 18.35 Euro/dlr 1.14 0.00 0.18 1.1368 0.58 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore. Editing by Shailesh Kuber and Tomasz Janowski.)
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