GRAINS-Soybean futures ease on Brazilian rains; US exports in focus
19.12.2023 (Hellenic Shipping News) - Chicago soybean futures edged lower on Tuesday, shedding some of the previous session’s gains, on improved weather in top exporter Brazil, although strong demand for U.S. exports curbed losses.
Wheat gained ground, recovering from Monday’s deep losses, with prices under pressure from ample Russian supplies, while corn ticked higher.
“Weather for Brazilian soybeans has improved in some parts of growing areas,” said one Singapore-based trader. “We have to see how it goes for rest of the season. Chinese demand for U.S. beans will reduce if Brazilian crop outlook improves.”
Wheat Wv1 added 0.7% to $6.21-1/4 a bushel and corn Cv1 gained 0.2% at $4.78 a bushel.
Investors in the agricultural markets are monitoring weather forecasts for South America, where rains have aided recently planted crops in northern Brazil following a hot, dry start to the season. But parts of the region were missed by rains and may remain dry again through this month, forecasters said.
Good exports for U.S. beans demand underpinned soybeans following a series of large sales announced last week and talk of continued buying interest from China.
The U.S. Department of Agriculture on Monday reported corn and soybean export inspections last week near the high end of a range of trade estimates.
Brazil, the world’s largest soybean exporter, has for the first time exported over 100 million metric tons of the oilseed within a year, boosted by a record harvest and lower international prices, which buyers used to build up stocks.
A deadly summer storm over the weekend in Argentina has helped quench crops still reeling from a historic drought, a meteorologist said on Monday, although the storm paused operations at a key grains port.
The intense storm, which began on Saturday in the south of Buenos Aires province, left at least 13 people dead in the port town of Bahia Blanca before moving north and bringing much-needed rains to the country’s core agriculture zone in northern Buenos Aires and in the south and center of Santa Fe province.
China logged record corn imports of 3.59 million metric tons in November, customs data showed on Monday, adding to a record domestic crop and further pressuring prices in the world’s no.2 grower.
Argentina’s government on Monday said it would seek to hike export taxes for soybean oil and meal, as it looks for funds from the key grains industry to help dig the country out of its worst economic crisis in two decades.
The from Buenos Aires could benefit U.S. soy product exports, which more than offset early-session pressure from recent rains in South America that have stabilized drought-hit crops.
Commodity funds were net buyers of CBOT soybean, soymeal and soyoil futures contracts on Monday, traders said. Funds were net sellers of CBOT corn and wheat futures, they said. COMFUND/CBT
Source: Reuters (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips; Editing by Sonia Cheema)