HAMBURG: Chicago soybeans fell on Monday after hitting their highest in almost seven months on Friday, as dealers assessed the impact of dryness in key South American soy farming regions. Corn was little changed. Wheat dipped on expectations Australia’s crop will be better than feared coupled with lack of new purchase tenders.
Chicago Board of Trade most-active soybeans fell 0.2% to $14.06-3/4 a bushel at 1212 GMT.
Corn rose 0.04% to $6.06-1/2 a bushel, wheat fell 0.2% to $7.56-1/2 a bushel.
Markets firmed last week as the impact of hot, dry weather in soybean and corn production areas of Brazil and Argentina threatened to stress crops.
“Soybeans and corn are drifting today with the main focus on the hot and dry weather in South American crop regions, but not much news over the weekend to continue last week’s strength,” said Matt Ammermann, StoneX commodity risk manager.
“The market remains very jittery about dryness and heat in parts of Brazil and Argentina, and forecasts remain unfavourable, still indicating possible heat stress for crops in some areas.”
“There is also a lot of data scheduled for the market to digest this week including the USDA (US Department of Agriculture) reports on Wednesday.”
Analysts expect the USDA to cut its forecasts of soybean and corn crops in both Brazil and Argentina.
“The debate is now not whether the USDA will cut its soybean and corn harvest estimates for Brazil and Argentina, but how big the cuts will be,” Ammermann said. “Wheat is being weakened by factors including talk Australia’s crop will be larger than expected, while wheat might be looking oversold after recent weakness.”
“There is also a lack of demand, with no major new purchase tenders in the international market so far this week.” Iraq has not yet bought in its new wheat tender, traders said.
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