Chicago soybean slipped for a second consecutive session on Thursday as rains in arid areas of Argentina raised dealers’ expectations of supplies from the world’s largest soyoil and soymeal exporter. Corn prices also fell despite registering a positive outlook during the session while wheat ended the session bearish.
The most-active soybean contract on the Chicago Board of Trade (CBOT) shed 0.3 per cent to $14.14 a bushel, corn surrendered 0.5 per cent to $5.55-1/2 a bushel, while wheat was down 0.3 per cent at $6.38 a bushel.
Commenting on soybeans price decline, Phin Ziebell, agribusiness economist at National Australia Bank in Melbourne said there isn’t much downside risk as rains in Argentina have started easing the crop’s supply concerns.
Crop weather specialists also confirmed that rain storms this week in Argentina’s Pampas farm belt have reduced the deterioration of many drought-hit soybean and corn fields in the South American region, prompting expectations of a good supply in the coming harvest season. However, with demand, notably from China, far surpassing increases in supply, USDA has predicted a plunge in soybean inventory by the end of the current marketing year.
On the other hand, Wheat futures are under pressure over expectations of higher production in the world’s top exporter Russia.
According to a recent report by Russian Sovecon agriculture consultancy, Russia’s 2021 wheat crop is expected to rise to 79.3 million tonnes from the previously expected 76.2 million tonnes.
For corn, the USDA has confirmed 2.38 million tonnes in U.S. old-crop corn sales to China over the week following a meeting between both countries.