Posted on April, 13, 2023 at 12:38 am
Chicago soybean futures edged down on Wednesday, giving up some of the last session's gains, as a bumper harvest in Brazil and a slide in vegetable oil markets offset support from drought losses to Argentina's crop.
Wheat and corn rose slightly to recoup losses from Tuesday, with participants assessing weather conditions and tensions over a Black Sea export corridor from war-torn Ukraine.
Price movements were limited in keeping with wider financial markets as investors awaited U.S. inflation data as a gauge of subsequent interest rate moves by the U.S. Federal Reserve. MKTS/GLOB
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.2% at $14.95 a bushel by 1147 GMT.
Soybean production in Argentina will fall to a 23-year low and corn production to a five-year low due to drought, the U.S. Department of Agriculture (USDA) said on Tuesday as it cut sharply its forecasts for Argentina's crops.
But the USDA increased its outlook for Brazil's soy crop to a new record, while holding its projection for bigger corn output there this season.
"A jump in Brazilian production partially offset the sharp drop in Argentine production," commodities research firm Hightower said.
CBOT soyoil BOv1 shed 1.4%, tracking an earlier slide in palm oil FCPOc3 in Malaysia amid bearish supply and demand sentiment. POI/
CBOT wheat Wv1 gained 0.6% to $6.77-3/4 a bushel and corn Cv1 added 0.5% to $6.54-1/4 a bushel.
Traders were monitoring renewed Russian criticism of the deal allowing Ukraine to export grain from Black Sea ports.
Moscow, which agreed in mid-March to extend the arrangement for a reduced period until mid-May, said on Wednesday prospects for the deal were "not so great".
Wheat prices have not reacted significantly to the latest wrangling over the agreement, partly due to large exports by Russia.
"However, we fear that the market may be underestimating the risk of the talks breaking down," Commerzbank analysts said.
"Just how important the seaborne grains corridor has become for Ukraine is clear from the problems it is having transporting grains exports by land."
East European Union countries near Ukraine have called for measures to curb flows of cheaper Ukrainian grain to their markets.
Source: Nasdaq