SINGAPORE: Chicago soybean futures slid for a third consecutive session on Wednesday, with the market pressured by expectations of higher stocks in the United States following slower exports and a forecast of increased production Brazil.
Wheat gained for a second session while corn dipped after closing higher on Tuesday ahead of a key supply-demand report to be issued by the US Department of Agriculture on Friday.
The Chicago Board Of Trade most-active soybean contract fell 0.1 percent at $9.62-1/2 a bushel by 0251 GMT, having lost almost 1 percent since Monday.
Wheat added 0.1 percent to $4.32-1/2 a bushel, having closed up 1 percent on Tuesday and corn gave up 0.1 percent to $3.48-3/4 a bushel, having gained 0.5 percent in the previous session.
“There are abundant soybean supplies and the new Brazilian crop forecast will add more pressure on prices,” said one Singapore-based trader, despite some market concerns about the impact of adverse weather in Argentina.
Analyst expect the USDA to boost US soybean ending stocks after a bumper harvest at the end of last year and slowing exports due to quality issues.
Brazil’s 2017/18 soybean crop is expected at 111.8 million tonnes, 1.9 percent higher from the previous estimate, C?leres consultancy said on Tuesday.
Farmers harvested a record crop of 114 million tonnes in the last season.
For wheat, the USDA is expected to show smaller US winter wheat seedings, in the agency’s first forecast for 2018.
Suppliers of Black Sea wheat continue to pose stiff competition in the global market.
The state grain buying agency for top global wheat importer Egypt said it purchased 115,000 tonnes of Russian wheat in a tender.
Warmer temperatures this week in the US Plains alleviated some concerns that dormant winter wheat plants could be damaged.
Commodity funds were net buyers of CBOT corn, wheat and soyoil futures contracts on Tuesday and net sellers of soybeans and soymeal futures, traders said.
Source: Brecorder.com
