* Soybeans lose ground on Brazil, Argentina weather outlook
* Fall in China’s Dalian soybean futures adds pressure
Chicago soybean futures lost more ground on Wednesday to fall further from 4-1/2 month highs,
with improved weather for planting crops in Brazil and Argentina weighing on prices.
Corn rose 0.9 percent, while wheat edged higher. There was additional pressure on soybean prices from a decline in Dalian futures on worries about a cash crunch inChina.
The Chicago Board of Trade most-active soybean contracthad fallen 0.4 percent to $10.38-3/4 a bushel by 0457 GMT, after closing down 1.3 percent on Tuesday.
Corn advanced 0.9 percent to $3.39-3/4 a bushel and wheat rose 0.1 percent to $4.09 a bushel.
Soybean prices have been supported by strong demand for U.S. supplies led by China, but the focus is now shifting to SouthAmerica as planting progresses in key producers Brazil and
“The weather for planting soybeans in Brazil and Argentina is better than last year,” said Rajesh Singla, head of agriculture research at Societe Generale.
“Chinese demand is strong but they are merely buying in advance. Despite buying 20 to 25 percent more than last year, no one has increased their estimates for China imports for the
Dalian soybean futures slid 2.3 percent after two days of gains, soymeal gave up 2.4 percent and soyoil fell 1.4 percent.
Yuan borrowing costs in Shanghai surged to a two-month high on tight liquidity in the market after the central bank pulled funds from the financial system.
Weakness in crude oil prices, stemming from signs that leading oil exporters in OPEC were struggling to agree on cutting production, added to the bearish tone hanging over the soybean market on Tuesday.
U.S. farmers plan to cut their corn seedings and raise soybean plantings in the upcoming marketing year, the U.S.
Department of Agriculture said on Tuesday.
The USDA’s Office of the Chief Economist estimated that farmers will seed 90.0 million acres of corn in the 2017/18 crop year, down 4.5 million acres from 2016/17. For soybeans, acreage
will rise to 85.5 million from 83.7 million.
Egypt’s state grain buyer, the General Authority for Supply Commodities (GASC), bought 240,000 tonnes of Russian wheat in a tender. There were no U.S. supplies offered for sale,
underlining how uncompetitive U.S. wheat has become on the global market amid plentiful stocks.
Grains prices at 0457 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 409.00 0.25 +0.06% -1.80% 428.65 31
CBOT corn 339.75 3.00 +0.89% -2.51% 347.58 40
CBOT soy 1038.75 -3.75 -0.36% -1.63% 1006.38 66
CBOT rice 9.53 -$0.01 -0.05% -0.57% $9.87 45
WTI crude 45.46 $0.23 +0.51% -3.44% $46.83 43
Euro/dlr $1.063 -$0.001 -0.13% +0.19%
USD/AUD 0.7472 -0.001 -0.15% -0.09%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential