CANBERRA: Chicago soybean prices rose slightly on Friday but were headed for their biggest weekly fall since June last year amid plentiful supply, lacklustre US export demand and predictions of a large US crop.
Wheat and corn futures fell and were also set for weekly declines, with both markets amply supplied.
“US conditions are looking pretty phenomenal for soy and corn. It looks like it’s going to be a big harvest,” said Dennis Voznesenski, a Commonwealth Bank analyst in Sydney.
Meanwhile, South American soybeans and corn and northern hemisphere wheat are being harvested, bringing new supply onto the market and pressuring prices, Voznesenski added.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.3% at $10.70-1/2 a bushel by 0407 GMT.
It was down 5.2% over the week having slipped to $10.61-1/2 on Thursday, its lowest since 2020. CBOT wheat was down 0.5% at $5.68-1/4 a bushel and was down 3.8% from last Friday’s close, after hitting a three-month low of $5.56 on Wednesday.
CBOT corn slipped 0.2% to $4.10 a bushel and was heading for a 3.4% weekly loss.
Prices are close to a four-year low reached in late June.
All three crops fell sharply earlier in the week after the US Department of Agriculture (USDA) said US crop condition ratings have improved more than analysts had expected. Speculators are betting heavily on further price falls.
Wheat, corn and soybeans rebound ahead of data
Traders now await a USDA supply and demand report due later in the day.
The dollar weakened sharply on Thursday, supporting US farm products by making them cheaper for buyers holding other currencies.
For corn, crop agency Conab on Thursday raised its estimate of Brazil’s 2023/24 corn crop by 1.7 million metric tons.
For wheat, France is set for a steep fall in exports and stocks this season due to a rain-hit harvest, farm office FranceAgriMer said, and the Rosario grains exchange said Argentina’s 2024/25 crop would be around 500,000 metric tons smaller than it previously estimated due to a lack of rain.
However, lower French and Argentinian output is offset by promising US and Russian harvest prospects.
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