PARIS/CANBERRA: Chicago soybean and corn futures fell on Thursday, holding around three-year lows as abundant supplies and dollar strength hung over markets while traders awaited US crop planting and export data.
The most active soybean contract on the Chicago Board of Trade (CBOT) was down 0.2% at $11.698-1/2 a bushel by 1133 GMT while CBOT corn eased 0.4% to $4.22-3/4 a bushel.
Soybeans hit their lowest since December 2020 while corn equalled Wednesday’s three-year trough. CBOT wheat slipped 1.2% to $5.78-1/2 a bushel to trade near Wednesday’s one-month low. US grains and soybeans face stiff competition for export business from South America and the Black Sea region. The strength of the dollar, having hit a three-month high this week, also makes US farm products costlier for importers.
“Many of these markets are oversold, with managed money holding massive short positions. But thus far there isn’t a headline to create concern among these money managers to cause them to change their positions,” said StoneX analyst Arlan Suderman.
US ending stocks are expected to be large when the US Department of Agriculture issues crop forecasts at an annual conference starting on Thursday.
Analysts project 2024-25 soybean ending stocks at 411 million bushels, up from 315 million bushels in 2023-24; wheat ending stocks at 717 million bushels, up from 658 million in 2023-24; and corn ending stocks at 2.594 billion bushels, up from 2.172 billion in 2023-24.
Analysts also estimate 2024 US soy plantings of 86.5 million acres and production of 4.421 billion bushels. Corn plantings are estimated at 91.8 million acres, with production of 15.150 billion bushels.
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