Soybeans climb to 6-week high, wheat falls after rally
Chicago soybean futures reached their highest level since March amidst concerns of supply disruptions in Brazil due to flooding in Rio Grande do Sul, the country’s second-largest producer. Meanwhile, wheat prices dipped over 1% on profit-taking after recent gains linked to dry weather in Russia. Corn also slipped as Argentina’s corn harvest outlook was revised downward due to disease and adverse weather. Russia’s wheat crop forecast was reduced, contributing to market volatility.
SINGAPORE, May 6 (Reuters) – Chicago soybean futures jumped to their highest since late March on Monday, as flooding in Brazil’s key producing state is threatening to curb supplies from the world’s No. 1 exporter.
Wheat prices slid more than 1%, giving up some of the recent gains which were triggered by dry weather in top exporter Russia, while corn fell for the first time in four sessions.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.2% to $12.16-3/4 a bushel, as of 0010 GMT, after climbing to its highest since March 21 at $12.19 a bushel earlier in the session.
* Wheat fell 1.5% to $6.13-1/4 a bushel and corn lost 0.8% to $4.56-3/4 a bushel.
The outlook for the soybean harvest in Rio Grande do Sul, which was on track to become the second largest producer in Brazil behind Mato Grosso state, is deteriorating swiftly after torrential rains flooded fields, with about a quarter of beans to be reaped.
* The state is Brazil’s sixth-largest corn producer.
* In Argentina, corn stunt disease spread by leaf-cutter insects and adverse weather prompted the Buenos Aires grains exchange to slash its estimate for Argentina’s 2023/24 corn harvest by 3 millions metric tons to 46.5 million tons.
* Worries of crop losses in Russia has been driving gains in wheat market over the past few weeks with CBOT wheat up 8% in April.
* Russia’s IKAR agricultural consultancy has cut its forecasts for Russia’s wheat crop to 91 million tons from 93 million tons and wheat exports to 50.5 million tons from 52 million tons, it said on Friday.
* Large speculators trimmed their net short position in Chicago Board of Trade corn futures in the week to April 30, regulatory data released on Friday showed.
* The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and trimmed their net short position in soybeans.
Source Link: https://www.livemint.com/news/soybeans-climb-to-6-week-high-wheat-falls-after-rally-11714956174075.html
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