Chicago | Reuters — U.S. soybean futures fell on Friday after the Department of Agriculture’s updated estimate of Brazil’s soybean harvest fell toward the high end of trade expectations, easing concerns about global supplies of the oilseed.
Corn fell after the USDA left its forecasts for corn production in Brazil and Argentina unchanged, while wheat declined 1.6 per cent on profit-taking after hitting a one-week high.
Declines in soybean futures set the tone. The USDA pegged Brazilian soy production at 161 million metric tons in a monthly report, down from its November estimate of 163 million but still the largest crop on record, if realized. Analysts surveyed by Reuters on average expected an estimate of 160.16 million metric tons.
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“It (USDA’s report) was in line with pretty much what we were expecting, even that Brazil soybean number,” said Karl Setzer, partner at Consus Ag Consulting. “I just can’t see anything here that would warrant altering your market stance.”
Central and northern regions of the South American country have grappled with high temperatures, while southern areas faced excessive rains. However, at 161 million tons, the current 2023/24 soy crop is still on track to surpass Brazil’s previous record crop from 2022/23, which the USDA estimated at 160 million tons.
Chicago Board of Trade (CBOT) soybeans Sv1 settled down 7-3/4 cents at $13.04 per bushel, retreating after setting a one-week high at $13.30-3/4. For the week, the contract fell 21 cents a bushel or 1.6 per cent.
CBOT corn Cv1 settled down 2-1/2 cents at $4.85-1/2 a bushel, finishing the week relatively flat.
Traders shrugged off support from fresh U.S. export sales of soybeans, wheat and corn. Earlier on Friday, the USDA confirmed sales of 136,000 metric tons of U.S. soybeans and 110,000 tons of soft red winter wheat to China, along with sales of 165,000 tons of corn to unknown destinations.
Since Monday, the U.S. government has reported sales of 1,120,000 tons of soft red wheat to China.
CBOT’s most active wheat contract Wv1 settled Friday down 10-1/2 cents at $6.31-3/4 per bushel, but ended the week up 4.8%.
–Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra.
