Soybeans ease on Brazilian weather

SINGAPORE — Chicago soybean futures lost ground on Monday, with the market declining for the first time in three sessions as expectations of rains in Brazil weighed on prices, although robust demand for US cargoes limited the fall in prices. Wheat fell around 1% and corn slid.

The most-active soybean contract on the Chicago Board of Trade (CBoT) was down 0.5% to $13.09-3/4 a bushel by 0346 GMT.

CBoT corn lost 0.5% to $4.801/2 a bushel and wheat gave up 1% to $6.23-1/4 a bushel.

The market is weighing the prospects for soybean production in Brazil, where rains are expected to ease the heat and dryness in key cropping areas, which could improve yields.

However, Brazilian soy farmers are now facing a dearth of seeds as suppliers have run out of the main cultivars, the head of seed company Boa Safra Sementes said.

On the demand front, the US Department of Agriculture on Friday confirmed export sales of US soybeans for an eighth consecutive trading session, saying that 447,500 metric tons were sold to unknown destinations and another 134,000 metric tons to China.

Domestic demand for US beans also looked solid. Monthly data from the National Oilseed Processors Association showed that the US soybean crush in November rose to its second-highest level on record, exceeding expectations.

Soybeans have fallen from over $15 a bushel at the start of the year, but clawed back from a twoyear low of $12.51 in October.

In the wheat market, speculators had by Dec. 12 slashed their net short in CBoT futures and options to 69,529 contracts, the smallest in 17 weeks, and traders said they bought again on Friday.

A run of large sales of US wheat to China triggered a flurry of short covering that drove futures to a four-month high of $6.50 a bushel on Dec. 6, but plentiful supply, particularly from Russia, has kept prices under pressure.

US exports of soft red winter wheat are set to exceed exports of hard red winter wheat for the first time in 2023-2024.

Argentina’s 2023/2024 wheat harvest is, meanwhile, likely to get a boost after a strong showing in the southern agricultural region, the Buenos Aires grains exchange said. —