Posted on November, 29, 2023 at 07:24 am
Chicago soybean futures firmed on Monday as forecasts of lower output in the world’s biggest exporter Brazil following hot and dry weather underpinned prices.
Wheat inched higher, recouping some of last session’s losses while corn gained ground.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.4% to $13.35-1/2 a bushel, as of 0113 GMT, after sliding to its lowest since Nov. 2 at $13.24 a bushel earlier in the session.
* Wheat gained 0.4% to $5.79-1/2 a bushel and corn added 0.4% to $4.84-1/4 a bushel.
* Agribusiness consultancies Safras & Mercado and hEDGEpoint on Friday reduced their estimates for Brazil’s 2023/24 soybean crop, as consensus grew that bad weather will hamper output in the world’s largest producer and exporter.
* Safras said it now forecasts production this season to total 161.38 million metric tons, down from the 163.25 million it estimated before, while hEDGEpoint cut its projection to 160.1 million tons from 162.3 million.
* In Argentina, grains trade was largely “paralyzed” by a lack of soybeans due to drought and farmers holding onto produce, anticipating a devaluation of the peso under President-elect Javier Milei.
* However, the first sprouts of the 2023/24 soybean crop appeared in good shape after rains.
* Ukraine needs more air defences to protect its grain export routes as well as regions bordering Russia, President Volodymyr Zelenskiy said on Saturday, as he addressed an international summit on food security in Kyiv.
* Dry weather in the growing season has reduced Australia’s wheat output this year, but most of the crop is with higher protein content and supplies of lower quality grains for animal feed are limited, analysts and traders said.
* The U.S. Department of Agriculture reported exporters sold 129,000 tonnes of U.S. soybeans to China and another 323,400 tonnes of U.S. soybeans to unknown buyers.
* The USDA separately said 2023/24 U.S. soybean export sales in the week ended Nov. 16 were 961,300 metric tons, toward the low end of analysts’ estimates. Weekly U.S. corn export sales for 2023/24 were toward the high end of estimates, while wheat sales met expectations.
* Commodity funds were net sellers of CBOT soybean, soyoil, soymeal, wheat and corn futures contracts on Friday, traders said.
MARKET NEWS
* Asian shares got off to a hesitant start on Monday ahead of potentially market-moving inflation data from the United States and Europe later in the week, and a meeting of oil producers that could stop, or extend, the recent slide in prices.
DATA/EVENTS (GMT) 1100 France Unemp Class-A SA Oct 1500 US New Home Sales-Units Oct
Source: Reuters (Reporting by Naveen Thukral; Editing by Janane Venkatraman)
Source: Hellenics Shipping News