Soybeans under pressure from Brazilian rain forecasts, wheat rebounds
Chicago soybeans were largely unchanged on Thursday after a two-day slide, as expectations of rains in Brazil’s parched oilseed producing regions continued to pressure prices.
Wheat jumped 1%, while corn futures gained ground.
“Soybeans are being driven by Brazilian weather forecasts which are showing some rains next week,” said one Singapore-based trader. “The wheat market is just recovering from last session’s losses as there is some buying interest at these levels.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 fell 0.1% to $13.06-1/4 a bushel, as of 1200 GMT. Wheat Wv1 rose 1% to $6.11 a bushel and corn Cv1 gained 0.6% at $4.82-1/2 a bushel.
The soybean market is closely watching the weather in Brazil, where forecasts showed much-needed rains in the week ahead in central and northern parts of the country, after hot, dry conditions caused concern, analysts said.
Traders monitored headlines from Argentina, where the peso dropped more than 50% as markets watched the first details of new President Javier Milei’s plans to steer the beleaguered economy back on track.
Argentina’s new government will seek to raise export taxes to 15% on some grains, though that would not impact tariffs on soybeans.
The U.S. soybean crush likely set a November record but slowed from an all-time high in October, while soyoil stocks were estimated to have risen for the first time in seven months, analysts said ahead of a monthly National Oilseed Processors Association (NOPA) report due on Friday.
In Europe, farm office FranceAgriMer on Wednesday increased its forecast of French soft wheat exports outside the European Union in 2023/24 due to higher projected sales to China but expressed concerns for the 2024 harvest after heavy rainfall limited sowings.
Commodity funds were net sellers of CBOT corn, wheat, soybean, soymeal and soyoil futures contracts on Wednesday, traders said.
Source: Reuters (Reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
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