SINGAPORE: Chicago soybean and corn futures slid on Friday with both markets set for weekly declines, under pressure from disappointing US weekly exports and ample global supplies.
Wheat edged higher but the market is poised for a weekly loss on better-than-expected US winter crop prospects.
The most-active soybean contract on the Chicago Board of Trade is down half a percent this week, corn has lost 0.8 percent and wheat has given up 1.3 percent. All three markets posted gains last week. Soybeans came under pressure after the US Department of Agriculture reported export sales of US soybeans in the week to April 4 at 280,400 tonnes, well below a range of trade expectations. Corn export sales, at 548,000 tonnes, also fell below expectations.
There is additional pressure stemming from higher output in South America. Argentina will harvest 55 million tonnes of soy this season, the Buenos Aires Grains Exchange said on Thursday, citing high yields as it raised its previous forecast a day after the Rosario exchange also increased its estimate for the crop.
Mild weather for the Pampas farm belt over the last month has pumped yields to higher-than-expected levels as growers bring in the crop. An ample harvest of soy, Argentina’s main cash crop, would help bring in export tax revenue needed by the government to cut its fiscal deficit.
A second “bomb cyclone” blizzard hitting the United States was limiting the movement and processing of corn, soybeans and wheat around the Midwest and Plains on Thursday.
“Weather forecasters do not seem to think the cold will do much damage to crops,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. “And the additional moisture may benefit some crops on the western side of US winter wheat. —Reuters