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By Naveen Thukral
SINGAPORE, March 29 (Reuters) – Chicago soybean futures slid on Wednesday as prices eased from last session’s one-week high, although concerns over lower production in drought-hit Argentina provided a floor under the market.
Wheat fell and corn edged higher in positioning ahead of Friday’s annual U.S. Department of Agriculture (USDA) planting intentions report.
“Argentina is the world’s largest meal exporter and crushing facilities are having difficult time in buying soybeans from producers,” commodities research firm Hightower said in a report.
“The early stages of U.S. planting across the Midwest are running into wet fields and cold temperatures.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 fell 0.2% to $14.65-1/2 a bushel, as of 0256 GMT. Wheat Wv1 lost quarter of a cent to $6.99-1/2 a bushel and corn Cv1 added 0.1% to $6.47-3/4 a bushel.
Argentina’s Buenos Aires grains exchange maintained its 2022/2023 production forecasts for both soybean and corn on last week, but cautioned further cuts were possible with yields on the first batches of soy coming in below expectations.
The exchange, which has been forced by a historic drought hitting the country to repeatedly sharply cut soybean and corn harvest forecasts, held its soybean estimate at 25 million tonnes and its corn outlook at 36 million tonnes.
Agricultural markets are likely to seek direction from U.S. planting report due on Friday.
Analysts polled by Reuters ahead of the report on average expect 2023 corn plantings at 90.880 million acres, wheat at 48.852 million acres and soybeans at 88.242 million acres.
Ukraine’s grain exports for the 2022/23 season were down 17.7% to 36.9 million tonnes as of March 27 reflecting a smaller harvest and logistical difficulties caused by Russia’s invasion, agriculture ministry data showed.
Russia has no plans to halt wheat exports but wants exporters to ensure high prices for farmers, sources told Reuters.
The USDA reported another flash sale to China of 136,000 tonnes of U.S. corn.
Commodity funds were net buyers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Tuesday, traders said. COMFUND/CBT
(Reporting by Naveen Thukral; editing by Uttaresh Venkateshwaran)
((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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