CANBERRA, Jan 11 (Reuters) – Chicago soybean futures
regained some ground on Thursday but remained near their lowest
levels since December 2021, amid lacklustre demand for U.S.
exports and an improved supply outlook from South America.
Corn futures also inched higher, but were close to their
lowest since December 2020, while wheat dipped.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of
Trade (CBOT) was up 0.4% at $12.41-1/2 a bushel by 0120
GMT after slipping to $12.34 on Tuesday.
* CBOT corn edged up 0.1% at $4.59-3/4 a bushel after
hitting $4.52 on Monday and Tuesday.
* Wheat was down 0.2% at $6.09-1/2 a bushel.
* Recent rains in Brazil have eased concerns over dryness
that had been driving down yield estimates. With harvesting now
underway, crop agency Conab projected a 155.3 million metric ton
2023/24 crop, around 5 million tons less than it previously
forecast but still a record high.
* Conab also said Brazil should remain the world’s top
soybean exporter, even if its 98.4 million ton export projection
is slightly below the 101.8 million tons shipped in the 2022/23
season.
* Meanwhile, the Rosario grains exchange raised its estimate
for Argentina’s 2023/2024 soybean harvest by 2 million tons to
52 million tons, and the Buenos Aires grains exchange said
soybean and corn planting would see favourable weather over the
next few days, further easing supply concerns.
* On the demand side, concern is growing over weak U.S.
export sales. It has been weeks since the U.S. Department of
Agriculture (USDA) reported a flash sale of soybeans or corn.
Soybean exports this season are well behind last year.
* Commodity funds were net sellers of CBOT soybeans on
Wednesday while buying corn and wheat, traders said.
* In corn markets, Conab said Brazil’s production would fall
to 117.6 million tons and its exports would decline to 35
million tons this season from 56 million tons in the last.
* However, Argentina’s 2023/2024 corn harvest should reach a
record 59 million metric tons, the Rosario grains exchange said,
raising its forecast by three million tons.
MARKETS NEWS
Global stock indexes rose and U.S. 10-year Treasury yields
edged up on Wednesday as investors awaited a U.S. consumer price
report that could give clues on when the Federal Reserve may
begin cutting interest rates.
(Reporting by Peter Hobson; Editing by Varun H K)
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