U.S. wheat futures fell for the first time in five trading days as supply outlook improved, while U.S. soybean prices firmed
Chicago wheat futures fell for the first time in five sessions on Tuesday as improving U.S. winter crop conditions boosted global supply prospects for 2024 and added to price pressures.
Soybean prices rose, near the previous session’s eight-week high, as weather concerns in top exporter Brazil delayed planting and strong demand from China.
As of 20:19 Beijing time, the main wheat contract Wv1 of the Chicago Board of Trade (CBOT) fell 1% to US$5.70-1/4 per bushel. Soybeans Sv1 fell 0.3% to $13.60 a bushel, while corn Cv1 fell 0.3% to $4.72-1/2 a bushel.
The U.S. Department of Agriculture (USDA) on Monday rated 50% of the U.S. winter wheat crop condition as good to excellent, up 3 percentage points from the previous week and the highest level since 2019, as soil moisture improved in 2019 . The plains experienced three years of drought.
Improved crop prospects following rains in drought-stricken Australia and Argentina are also weighing on wheat prices.
Meanwhile, winter crops sown in Ukraine for the 2024 harvest are expected to survive the winter successfully and yield a bumper harvest, scientists from the Ukrainian Academy of Agricultural Sciences said on Tuesday.
The market is monitoring crop weather uncertainty in Brazil, with soybean planting being delayed. Drought is a problem in the main soybean-producing state of Mato Grosso, while heavy rains have flooded southern areas.
Customs data showed on Tuesday that China imported 5.16 million tons of soybeans in October, up 25% year-on-year but lower than analysts expected as Brazilian soybeans continued to arrive at ports later than usual.
However, rapid progress in the U.S. corn and soybean harvests has weighed on prices. As of Sunday, the corn harvest was 81% complete, slightly below analysts’ average estimate of 82% but above the five-year average of 77%.
Likewise, the soybean harvest is 91% complete, below the average estimate of 92% but above the five-year average of 86%.
Commodity funds on Monday increased their net long positions in CBOT corn, soybeans, soyoil and wheat futures contracts and increased their net short positions in soymeal futures, traders said.
2023-11-07 12:42:00
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