CANBERRA: Chicago corn and soybean futures hovered near four-year lows on Friday and looked set to post weekly losses, as forecasts for cool, rainy weather in the US corn belt improved the supply outlook.
Chicago soybeans, corn edge down on ample US supplies, China demand worries
Wheat futures were also near their lowest levels since 2020, but on track for a weekly gain as traders weighed the production impact of adverse weather in Europe and China.
Fundamentals
The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.1% to $10.16 a bushel by 0037 GMT and was down 3% for the week, having hit a four-year low of $10.13 on Thursday.
CBOT corn rose 0.2% to $3.99-1/4 a bushel, but was down 2.6% from last Friday’s close, having fallen to a four-year low of $3.95 on Thursday.
Wheat was flat at $5.32 a bushel and up 1.6% over the week. Prices remain near a four-year low of $5.14 reached on Monday.
Dealers said US farmers have begun selling corn and soy stored from the 2023 harvest as the chance of higher prices recedes and they seek to make room for the coming crop.
The market shrugged off the US Department of Agriculture’s confirmation of private sales of 132,000 metric tons of new-crop US soybeans to China, the first sales announcement to the world’s top soy buyer in three weeks.
Commodity brokerage StoneX projected US 2024 corn production at 15.207 billion bushels and soybean production at 4.483 billion bushels.
Speculators anticipating ample supplies have amassed large net short positions in CBOT soybeans, corn and wheat. Funds were net sellers corn and soybeans and net buyers of wheat on Thursday, traders said.
Storms and forecasts of more showers could halt the French wheat harvest again after farmers made progress during a hot spell early this week.
Chinese Vice Premier Liu Guozhong urged local authorities to seek to minimise agricultural losses and ensure a robust autumn grain harvest after torrential rain and floods lashed Henan, the country’s largest wheat-growing province.
However, top wheat exporter Russia has maintained its official grain harvest forecast for this year at 132 million metric tons despite adverse weather conditions in recent months.
Moderate rains in Argentina’s farming heartland over the next few days are expected to benefit the 2024/25 wheat crop, the Buenos Aires grain exchange said.