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SINGAPORE, Oct 13 (Reuters) – Chicago soybeans edged lower on Thursday, as the market retreated from previous session’s two-week top after the U.S. Department of Agriculture (USDA) unexpectedly reduced its harvest forecast.
Corn prices were largely flat, while wheat gained ground on concerns over supplies.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.1% at $13.94-1/2 a bushel, as of 0009 GMT, after hitting its highest since Sept. 30 at $14.14 a bushel on Wednesday.
* Corn Cv1 slid quarter of a cent to $6.92-3/4 a bushel and wheat Wv1 added 0.8% to $8.89-1/4 a bushel.
* In its monthly supply-and-demand report, the USDA said the country’s corn and soybean crops would be smaller than previously forecast, raising concerns about tight global inventories.
* Analysts, on average, had expected a corn production cut but a rise in the soybean crop.
* The agency pegged U.S. soybean yield at 49.8 bpa Wednesday, lower than 50.5 last month and the trade guess of 50.6, cutting U.S. soybean production more than 3% from 2021 to 4.3 billion bushels.
* The government also cut its outlook for the domestic stockpile of wheat to the lowest in 15 years. It said ending stocks of wheat for the 2022/23 marketing year would total 576 million bushels, down 13.9% from a year earlier and the smallest since 306 million bushels in 2007/08.
* The market is monitoring grain shipments from the Black Sea region after an escalation in Russian missile strikes on Ukraine.
* Farm office FranceAgriMer on Wednesday raised its forecast for French soft wheat exports outside the European Union, now seen 15% above last season, but said sales would depend on whether a Ukrainian grain export corridor was extended.
* Commodity funds were net buyers of CBOT soybean and soymeal futures on Wednesday and net sellers of corn and wheat, traders said. They were net even in soyoil futures. COMFUND/CBT
MARKET NEWS
* Wall Street’s equity indexes ended Wednesday’s volatile session in the red and the dollar made little progress while bond yields fell as investors digested minutes from the latest Federal Reserve meeting and waited for a key U.S. inflation reading. MKTS/GLOB
DATA/EVENTS (GMT)
0060 Germany HICP Final YY Sept
1230 US CPI Wage Earner Sept
1230 US Initial Jobless Clm Weekly
World financial leaders gather for IMF/World Bank
Spring meetings in Washington
(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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