IKAR in Mass Media

Soybeans hold gains as dry weather hits Brazilian supply outlook

29 ноября 2023 года

CANBERRA, Nov 29 (Reuters) - Chicago soybean futures on Wednesday held on to gains made in the previous session amid expectations that hot and dry weather in Brazil would reduce yields in the world's top producer.

Wheat futures rose while corn fell.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) was unchanged at $13.46-1/2 a bushel by 0213 GMT after rising 1.3% on Tuesday.

* CBOT corn fell 0.1% to $4.73 a bushel and wheat rose 0.6% to $5.75-1/2 a bushel.

* Brazilian farmers should reap 155 million metric tons of soybeans in the 2023/24 cycle, 10 million tons below initial expectations, after drought affected those in Mato Grosso state who planted their crop early, a consultant at MB Agro said.

* The forecast was below the 163 million metric ton harvest expected by the U.S. Department of Agriculture (USDA).

* Also supporting prices was a USDA confirmation that U.S. exporters sold 123,300 metric tons of soybeans to unknown destinations for 2023/24 delivery.

* Soybeans rose to a 2-1/2-month high of $13.98-1/2 a bushel in mid-November on fears that dry weather in South America would reduce harvests.

* Prices have since drifted lower, but speculators still hold a net long soybean position.

* Commodity funds were net buyers of CBOT soybeans, wheat and soyoil futures on Tuesday and sellers of corn and soymeal, traders said.

* In wheat markets, Agritel said Russian production could reach 90 million tons in 2024 after favourable autumn sowing and Russian supply including that drawn from stocks could be above 100 million tons for a third consecutive season in 2024/25.

* Russia is the world's biggest wheat exporter. Plentiful shipments from the country have held wheat prices near 3-year lows in recent months.

* However, Russia's Izvestia newspaper reported that the government may impose a ban on grain exports if its stockpiles fall to 10 million tons.

* Russian export prices for 12.5% protein wheat for FOB delivery in January rose by $5 last week to $235 a ton, helped by a drop in shipments due to stormy weather in ports, the IKAR agriculture consultancy reported.

* Ukrainian farmers have almost completed their winter crop sowing, seeding about 5.96 million hectares as of Nov. 28, the country's agriculture ministry said on Tuesday.

MARKETS NEWS

MSCI's global stock index advanced on Tuesday while the dollar fell as a Federal Reserve official signalled that the U.S. central bank was done raising rates and could even consider rate cuts if inflation keeps easing.

Source: Reuters | #grain | Comments: 0 Views: 19

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