Reuters — Chicago Board of Trade soybean futures inched down on Wednesday, retreating after rallying to the highest levels since August, as improved Brazilian weather outlooks bolstered supply prospects and overshadowed demand from record U.S. soybean crushings last month.
CBOT corn also declined and wheat fell 2 per cent.
CBOT January soybean futures SF24 settled down 4-3/4 cents at $13.85 per bushel, turning lower after a climb to $13.98-1/2, the contract’s highest since Aug. 31.
“We’re taking a little pause after the recent rally here,” said Jack Scoville, market analyst at The Price Futures Group. “We’re still very much paying attention to the weather situation in South America.”
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A heat wave in Brazil, the world’s biggest soybean exporter, has amplified concerns about dry planting conditions for soybeans in northern and central regions. However, rain forecast for next week could bring relief and turn attention back to large global supplies of the oilseed, analysts said.
The showers are “not expected to be drought busters by any stretch of the imagination,” Scoville said. “We’ll probably be off to the races again once it’s proven that it wasn’t a big generalized soaking rainfall.”
Brazilian weather outweighed support from data showing U.S. soybean processors crushed a record amount of soybeans in October, while end-of-month soyoil stocks fell to the lowest in almost nine years.
CBOT December soyoil BOZ3 futures closed 0.30 cent higher at 53.05 cents per lb. December soymeal futures SMZ3 finished $4.40 lower at $469.20 per short ton, retreating after setting a new contract high of $479.
Market participants also monitored the outcome of a highly anticipated meeting on Wednesday between U.S. President Joe Biden and Chinese counterpart Xi Jinping for further indications on agricultural trade. China is the world’s top soybean importer.
CBOT December corn CZ3 settled down 7-1/2 cents at $4.70-3/4 per bushel while December soft red winter wheat WZ3 fell 11-1/2 cents to $5.60-1/2 per bushel.
–Reporting for Reuters by Brendan O’Brien, additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra.
