Weather in Brazil affected soybean production, and strong demand curbed losses

Mondo Three rural Updated on 2024-01-30

**: Market information.

*: Agricultural products collection and purchase network.

SINGAPORE, Dec. 18 (Reuters) -- Chicago soybeans ** on Monday**, the market for the first time in three sessions**, as expectations of rainfall in Brazil weighed on soybeans**, although strong demand for U.S. cargoes limited the decline in soybeans**. Wheat** about 1%, corn declined.

The weather is improving for soybeans in Brazil, said a grain trader in Sydney. It's not as bad as we saw a few weeks ago, but China continues to buy and that's a supporting factor.

As of 0346 GMT, the most active soybean contract on the Chicago Exchange (CBOT) is SV1**05% to 13 per bushel09-3 4 dollars. cbot corn cv1**05% to 4 per bushel80-1 2 dollars, wheat wv1**1% to 6 per bushel23-1 4 dollars.

The market is weighing the outlook for soybean production in Brazil, with rains expected to ease the heat and dryness in key growing regions, boosting yields. However, the Brazilian seed company Boa Safra Sementes Soja3The head of the SA said that Brazilian soybean farmers are currently facing a shortage of seeds, because the main cultivars of the first market have been used up.

On the demand side, the U.S. Department of Agriculture (USDA) on Friday confirmed export sales of U.S. soybeans for the eighth consecutive session, saying there were 44750,000 tonnes of soybeans were sold to unknown destinations, another 1340,000 tons were sold to China. Domestic demand for U.S. beans also appears to be stable. U.S. soybean crush rose to the second-highest level on record in November, beating expectations, according to monthly data from the National Association of Oilseed Processors.

Speculators bet on soybeans*** but exchange data showed that they trimmed their net long positions in the CBOT contract in the week ended Dec. 12. Traders said they were net sellers again on Friday. Soybeans rose from more than $15 per bushel at the start of the year**, but from a two-year low of $12 in October$51 recovered.

In the wheat market, speculators have reduced their net shorts in CBOT** and options to 69,529 contracts as of Dec. 12, the smallest in 17 weeks, with traders saying they were again on Friday. The massive sale of U.S. wheat to China triggered a massive short-covering, pushing *** to a record of 6 per bushel on Dec. 6A fresh four-month high of $50, but the abundance, especially from Russia, keeps the pressure on.

U.S. soft red winter wheat (SRW) exports will outpace hard red winter wheat (HRW) exports for the first time in 2023-24. Meanwhile, Argentina's 2023 wheat harvest could be boosted after strong performance in the southern agricultural region, the Buenos Aires Grain Exchange said.

The corn market was supported by Biden's decision to acknowledge an approach favored by the ethanol industry to provide guidance to companies seeking sustainable aviation fuel tax credits, traders said. Meanwhile, agribusiness consultancy Safras set Brazil's corn harvest at 1291.6 billion tonnes, down from 1357.1 billion tons.

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