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SINGAPORE — Chicago soybean and corn futures slid for a second session on Thursday, as forecasts of much-needed rains in Argentina’s crop belt eased some of the supply concerns resulting from a severe crop in the South American country.
Wheat lost more ground, although slow pace of exports from the Black Sea region supported the market.
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FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.2% to $15.22 a bushel, as of 0114 GMT and corn lost 0.3% to $6.79-1/4 a bushel.
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* Wheat fell 0.4% to $7.39-1/4 a bushel.
* Forecasts of rains in Argentina’s drought-hit growing areas could provide to relief to crops and prevent further damage, traders said.
* Brazil, the world’s biggest soybean exporter, is on track for an all-time high crop.
* Brazil’s 2022/23 summer grain production will outgrow total storage capacity for the first time in 20 years amid expectations of record soybean harvest, according to government data obtained by Reuters from Conab, the food supply and statistics agency.
* Agricultural markets drew support from optimism about an economic upturn in China, as investors looked beyond disappointing 2022 growth and anticipated a rebound in activity with the easing of COVID-19 restrictions.
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* China is by far the world’s biggest soybean buyer.
* The United Nations on Wednesday called out inefficiencies in the operation of a deal allowing Ukraine Black Sea grain exports, but did not lay blame for a backlog of more than 100 ships in Turkish waters waiting on travel approval and inspections.
* Commodity funds were net sellers of CBOT wheat, soybean, corn and soymeal futures contracts on Wednesday and net buyers of soyoil futures, traders said.
MARKET NEWS
* U.S. 10-year Treasury yields fell to a four-month low on Wednesday as data showed U.S. retail sales declined more than expected in December, while the yen was weaker against the dollar in the wake of the Bank of Japan’s decision to maintain ultra-low interest rates.
DATA/EVENTS (GMT) 1330 US Housing Starts Humber Dec 1330 US Initial Jobless Clm Weekly 1330 US Philly Fed Business Indx Jan (Reporting by Naveen Thukral; Editing by Rashmi Aich)
