Chicago soybean futures gained ground on Monday to their highest level in a week as lower plantings and inventories in the United States raised concerns about global supply.
Corn fell to its lowest level in two and a half years due to increased acreage in the United States, while wheat fell more than 1%.
FUNDAMENTALS
* The most active soybean contract on the Chicago Board of Trade (CBOT) gained 0.5% to $13.49-3/4 a bushel, at 0023 GMT, after hitting its highest level since June 22 at $13.57 a bushel.
* Corn fell 0.8% to 4.90-3/4 a bushel, after hitting its lowest level since January 2021 at 4.89 a bushel earlier on Monday, while wheat lost 1.3% at 6.42-1/2 a bushel.
* Soybean prices rose more than 6% on Friday after the U.S. Department of Agriculture (USDA) said U.S. farmers had planted 83.5 million acres of oilseeds, or 4 million acres lower than the government’s March forecast and below the lower estimate of an analyst range. The reduction in planted area should translate into lower oilseed stocks for new crops.
* The USDA reported U.S. soybean inventories as of June 1 stood at 796 million bushels, down 18% from a year earlier and below most market estimates.
* For corn, the agency estimated plantings at 94.1 million acres, an increase of more than 2 million acres from its March forecast, and that they exceeded the range of analysts’ estimates prior to the report’s release.
* Large corn acreage overshadowed weaker-than-expected inventory numbers. The USDA said corn stocks as of June 1 were 4.106 billion bushels, lower than most trade estimates, while wheat stocks as of June 1 fell to 580 million bushels, the lowest level for this time of year since 2008.
* Russia said on Friday it saw no reason to extend the Black Sea grains deal beyond July 17 because the West had acted so “outrageously” over the deal , but she assured poor countries that Russian grain exports would continue.
* The European Commission sharply cut its monthly forecast for this year’s grain harvest in the European Union on Thursday, with usable soft wheat production now down 2.6 million tonnes from last month, at 128, 9 million metric tons.
* Large speculators moved to a net long position in CBOT corn futures during the week of June 27, according to regulatory data released Friday.
* The Commodity Futures Trading Commission’s weekly Trader Commitments report also showed that non-commercial traders, a category that includes hedge funds, reduced their net short position in CBOT wheat and increased their net long position in wheat. soy.
MARKET NEWS
* Wall Street closed sharply higher and the dollar weakened on Friday as investors capped a strong quarter, with data showing progress in the Federal Reserve’s efforts to tame inflation.
DATA/EVENTS (GMT, June) 0145 China Caixin Mfg PMI Final 0750 France S&P Global Mfg PMI 0755 Germany HCOB Mfg PMI Final 0800 EU HCOB Mfg PMI Final 0830 UK S&P GLBL/CIPS Mfg PMI Final 1345 US S&P Global Mfg PMI Final 1400 US ISM Manufacturing PMI (reported by Naveen Thukral; edited by Rashmi Aich)
2023-07-03 00:49:35
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