PARIS/SINGAPORE: Chicago soybean futures edged lower on Wednesday after a run of seven consecutive daily gains as the market awaited further indications on weather risks to crops in Argentina.
Wheat edged higher, supported by a slide in the dollar, to recoup some of its losses on Tuesday when improved weather in some US grain belts created selling pressure.
Corn also ticked up, underpinned by the falling dollar and the backdrop of persisting dryness in Argentine grain belts.
The Chicago Board of Trade most-active soybean contract shed 0.1 percent to $9.85-1/2 a bushel by 1323 GMT. The market hit its strongest since Dec. 11 at $9.88-3/4 a bushel on Tuesday.
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CBOT corn gained 0.6 percent to $3.53-1/4 a bushel and wheat rose 0.7 percent to $4.24-1/2 a bushel.
Drought in parts of Argentina, the world’s third-largest soybean producer and largest exporter of soymeal and soyoil, has raised concern about lost plantings and yield damage, potentially denting currently ample global supplies.
“Argentina weather will remain supportive for soybean prices but at this stage I think the weather premium has already been built into the prices,” said one India-based agricultural commodities analyst.
Around a quarter of Argentine soybean and corn crops were under increasing stress from dryness and heat, and this could expand to more than half of the area by early February, Commodity Weather Group said in a daily note.
However, neighbouring Brazil, the world’s largest soybean exporter, is on track for another year of bumper production, while forecasters also expect US farmers to raise soybean acreage this year and plant more of the oilseed than corn for the first time.
Private analytics firm Informa Economics trimmed its forecast of US 2018 soybean plantings to 91.197 million acres, down from its previous projection of 91.387 million but still a potential record high, traders said.
Wheat markets were pressured by news that rain mixed with snow fell in parts of grain-growing areas in the US Midwest, providing moisture to the dormant soft red winter wheat crop.
However, the sharp fall in the dollar to a three-year low against a basket of other currencies, after the US Treasury secretary said he welcomed weakness in the currency, helped keep wheat and other grain prices steady.
Source: Brecorder.com
