Business World

Corn, soybean futures dip as US harvest progresses


SINGAPORE — Chicago corn and soybean futures lost more ground on Monday as a rapidly advancing US harvest season and a slowdown in exports put pressure on the commoditie­s. Wheat edged lower although trader concerns over tight global supply curbed losses.

“There is a bit of pressure on corn and beans from the US harvest,” said Ole Houe, director of advisory services at brokerage IKON Commoditie­s in Sydney.

“There is more (downside) to come as crops are large and China is not showing interest in buying US corn yet.”

The most-active corn contract on the Chicago Board of Trade (CBOT) was down 1% at $5.22 a bushel, as of 0219 GMT. Soybeans gave up 0.7% to $12.74-3/4 a bushel and wheat lost 0.1% to $7.08 a bushel.

Favorable weather over the weekend boosted US harvest, while exports remain capped by terminals on the US Gulf Coast that continue to struggle with power outages and hurricane-led damage as the country heads into its busiest export season.

Losses in wheat prices were also capped by lower output in key Northern Hemisphere suppliers, although Australia’s second consecutiv­e bumper crop is expected to ease some of the tightness in global supplies.

Last week, Australian forecaster­s upgraded wheat production targets to 32.6 million tons for the season ending June 30, 2022. This would make the target second only to last season’s record-breaking harvest of the country’s most valuable crop.

There are estimates of lower output of Canada’s drought-hit crop, as well as reduced outlook for French and European Union crops and expectatio­ns for a fall in winter wheat planting in Russia.

Large speculator­s cut their net long position in CBOT corn futures in the week ended Sept. 14, regulatory data released on Friday showed.

The Commodity Futures Trading Commission’s weekly commitment­s of traders report also showed that noncommerc­ial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and cut their net long position in soybeans. —

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