Chicago soybean futures lost further ground on Thursday, with prices hitting their lowest level in a week on rapidly advancing U.S. plantings.
Wheat fell for the fourth consecutive session due to favorable weather conditions for crop development in parts of the US Midwest.
FUNDAMENTALS
* The most active soybean contract on the Chicago Board of Trade (CBOT) fell 0.1% to $14.03 a bushel, as of 0039 GMT, after hitting its lowest level since May 3 at 2 p.m. $02 a bushel.
* Wheat was down 0.4% at $6.38-3/4 a bushel and corn was down 0.4% at $5.91-3/4 a bushel.
* The rapid pace of planting in the United States and forecasts of favorable weather conditions are weighing on soybean prices.
* However, Argentine stock exchange Rosario Grains cut its forecast for the 2022/2023 soybean crop by 6.5% to 21.5 million tonnes, it said on Wednesday, as the effects of adverse weather hit the main culture of the country.
* In the wheat market, talks on the Black Sea export deal are taking center stage.
* Turkish Foreign Minister Mevlut Cavusoglu said on Wednesday he believed Ukraine’s Black Sea grain deal could be extended for at least two months, as officials from the parties concerned held the first day of discussions on an extension to Istanbul.
* Russia has said it will not extend the deal beyond May 18 unless a list of demands are met to remove barriers to its own grain and fertilizer exports. Mr. Cavusoglu was speaking to reporters on his return from a trip to Moscow.
* Russian wheat export prices weakened due to still high export volumes, uncertainty surrounding the Black Sea grain deal and anticipation of a new harvest, said analysts on Wednesday.
* European Union soft wheat exports for the 2022/23 season which started last July reached 26.49 million tonnes as of May 7, up 11% from 23.87 million tonnes the previous year, according to data released by the European Commission on Wednesday.
* Commodity funds were net sellers of CBOT soybean, wheat and soybean oil futures on Wednesday, traders said. The funds were net buyers of CBOT corn and soybean meal futures.
MARKET NEWS
* US consumer prices rose in April at a slightly slower pace than expected, suggesting that the Federal Reserve is managing to keep inflation under control.
DATA/EVENTS (GMT) 0130 China PPI, CPI YY April 1100 UK BOE Bank Rate May 1230 US Initial Jobless Clm Weekly 1230 US PPI Machine Manuf’ing April Meeting of G7 Finance Ministers and Central Bank Governors in Niigata (reported by Naveen Thukral; editing by Rashmi Aich)
2023-05-11 00:54:16
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