SINGAPORE: Chicago soybean futures lost more ground on Tuesday as prices dropped to their lowest since late December, weighed down by ample supplies from a rapidly progressing US harvest.
Wheat also fell, although firm demand limited losses.
“There is pressure from the US harvest but we see the downside in soybean prices as limited,” said one Singapore-based trader. “Strong wheat demand is keeping prices higher.”
The most-active soybean contract on the Chicago Board Of Trade (CBOT) fell 0.3% to $12.32 a bushel by 0257 GMT, after dropping to its lowest since Dec. 21 at $12.31 a bushel.
Corn slid 0.5% to $5.38 a bushel and wheat dropped 0.3% to $7.54 a bushel.
The US corn harvest was 29% complete as of Sunday, the USDA said in a weekly crop progress report on Monday, ahead of the five-year average of 22% and matching the average estimate in a Reuters analyst poll.
The US soybean crop was 34% harvested, the USDA said, ahead of the five-year average of 26% and the average analyst estimate of 32%.
US-China trade tensions weigh on soybeans. US Trade Representative Katherine Tai pledged she will press Beijing over its failure to keep promises made in former US President Donald Trump’s trade deal.
Commodity brokerage StoneX on Monday lowered its estimate of the average US 2021 corn yield to 176.6 bushels per acre (bpa), from 177.5 in its previous monthly report released Sept. 2.
StoneX raised its forecast of the US 2021 soybean yield to 51.3 bpa, from its Sept. 2 figure of 50.8.
Higher wheat prices in Russia kept a floor under Chicago futures.
Russian wheat export prices rose for the 12th consecutive week, supported by robust demand.
Russian wheat with 12.5% protein loading from Black Sea ports for supply in the first half of November was $307 a tonne, free on board (FOB), at the end of last week, up $3 from the previous week, said Dmitry Rylko, the head of consultancy IKAR.
Commodity funds were net sellers of CBOT soybean and soymeal futures contracts on Monday, traders said. Funds were seen as net buyers of CBOT wheat and net even in corn and soyoil futures.