Chicago | Reuters — U.S. soybean futures fell Friday as news of a new COVID-19 variant discovered in South Africa sent oil and equities markets lower, with moves exaggerated by low trade volume across the grain and oilseed commodities.
Chicago Board of Trade January soybeans lost 13-3/4 cents, at $12.52-3/4 a bushel, the contracts biggest drop since Nov. 4 (all figures US$). For the week, CBOT’s most-active soybean contract lost 0.81 per cent.
CBOT’s most active March wheat fell 10 cents to $8.40-1/4 a bushel, while CBOT March corn ended 6-1/4 cents higher at $5.91-3/4 a bushel.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
For the week, wheat added 0.72 per cent and corn gained 3.63 per cent.
News of the COVID variant sent authorities in the European Union, Britain, India and Canada announcing stricter border controls as scientists seek to determine if the mutation is vaccine-resistant.
“Crude oil prices are down… on fears of the return of lockdowns globally,” said Arlan Suderman, chief commodities economist at StoneX, in a note. “The unknown of this variant creates fear, which is being played out in the markets today.”
Oil prices posted the largest one-day drop since April 2020, falling with global equities markets on fears a new COVID-19 variant could dampen economic growth and fuel demand.
Strong export sales softened the blow, with corn turning positive at the end of trading.
“The corn was insulated because of the export sales being at a marketing year high and China the number four buyer,” said Mike Zuzolo, president of Global Commodity Analytics.
U.S. exporters sold 1.565 million tonnes of soybeans during the week of Nov. 18, up 13 per cent from the previous week and the prior four-week average, according to the U.S. Department of Agriculture, primarily due to increases in sales to China. Sales were within analysts’ expectations.
Corn and wheat export sales beat expectations, with 1.429 million tonnes of corn sold, primarily to Mexico and Canada, up 58 per cent from the previous week. Exporters sold 567,500 tonnes of wheat, primarily to Japan and Nigeria, up 42 per cent from the previous week and 70 per cent from the prior four-week average.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
