Chicago | Reuters — Chicago soybean futures tumbled on Wednesday, pressured by technical selling and outlooks for record-large U.S. plantings this year, traders and analysts said.
Chicago Board of Trade May soybean futures dropped 16-1/2 cents, or 1.7 per cent, to $10.32-1/4 per bushel (all figures US$).
Prices accelerated declines at late-morning after advisory service Allendale Inc. released a survey of farmers predicting U.S. soy plantings at 92.104 million acres and corn sowings at 88.514 million acres.
Soybean plantings this year in the U.S. are widely believed to be going to rise above corn for the first time since 1983 as prices ratios point to higher profits in soy.
Cash prices for soybeans in the U.S. eased this week as global buyers turned attention to a record soy harvest in Brazil, and amid fears that top importer China would retaliate against U.S. soybeans due to steel and aluminum tariffs announced last week by President Donald Trump.
“Beans dropped off hard today, responding to sharply weaker cash premiums in beans and meal, with fear of a new tariff war hurting U.S. soybeans, and maybe a bit off private surveys showing big planted bean acreage this spring,” ED+F Man Capital analyst Charlie Sernatinger said in a note.
CBOT May corn futures settled three cents lower at $3.88-3/4 per bushel, setting back in the wake of Tuesday’s seven-month high that triggered corn sales by U.S. farmers.
Investment funds were net sellers of both commodities, traders said.
Winter wheat up
CBOT May wheat was 2-1/4 cents higher at $4.88-3/4 per bushel and K.C. May wheat 4-1/2 cents higher at $5.24-3/4, rising on worries that drought in the southern U.S. Plains was damaging wheat plants as they exited dormancy.
The governor of top wheat state Kansas on Tuesday declared a drought emergency in 28 counties and issued drought warnings and watches for the rest of the state.
The state buying agency for major wheat importer Egypt after the close of trading announced a tender seeking global offers of wheat for shipment from April 15-25.
— Michael Hirtzer reports on commodity markets for Reuters from Chicago; additional reporting by Colin Packham in Sydney and Gus Trompiz in Paris.