2023-11-30 11:00:05
The drop in the price of soybeans is due to the drought conditions affecting South America, particularly Brazil.
Chicago soybean futures on Wednesday gave up some of the previous session’s gains, even as traders assessed the impact of hot, dry weather conditions in Brazil, which are reducing yields in the world’s top producer. This situation could benefit Argentina, recognized as one of Brazil’s main trading partners and supplier of these grains when there are shortages.
Wheat futures rose, while corn futures fell.
The most active soybean contract on the Chicago Board of Trade (CBOT) was down 0.2% at $13.44-1/2 a bushel at 0607 GMT, after rising 1.3% on Tuesday.
“Brazil is in the spotlight right now,” said Ole Houe of agricultural brokerage IKON Commodities in Sydney. Uncertainty over the size of the crop could cause price volatility in the short term, Houe said, adding that Brazil’s soybean crop would remain large.
An MB Agro consultant said he expected Brazil to harvest 155 million metric tons of soybeans in the 2023/24 cycle, 10 million tons below initial expectations, after drought hit farmers in Mato Grosso state. who planted their crop early.
Also supporting soybean prices was confirmation from the US Department of Agriculture that US exporters sold 123,300 metric tons of beans to unknown destinations for delivery in 2023/24.
Chicago soybeans rose to a two-and-a-half-month high of $13.98 a bushel in mid-November on fears that dry weather in South America would reduce harvests.
Prices have fallen since then, but speculators remain net long in soybeans and commodity funds were net buyers on Tuesday, according to traders.
As for wheat, Agritel said Russian production could reach 90 million tonnes in 2024 following favorable autumn planting and that Russian supply, including from stocks, could exceed 100 million tonnes for the third consecutive season in 2024/25.
Russia is the world’s largest exporter of wheat and abundant shipments from the country have kept wheat prices near three-year lows in recent months, but Russia’s Izvestia newspaper reported that the government could impose a ban on exports of the grain. if its stocks fall to 10 million tons.
Russian export prices for wheat with 12.5% protein for FOB delivery in January rose $5 last week, to $235 per ton, favored by the drop in shipments due to the storm in ports, according to the consulting firm. IKAR agricultural.
Ukrainian farmers have almost completed planting winter crops, sowing some 5.96 million hectares as of Nov. 28, the country’s Agriculture Ministry said.
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