- Soybeans down almost 10 pct in 5 consecutive weeks of decline
- Record South American supplies, higher U.S. planting weigh
SINGAPORE, April 7 (Reuters) – Chicago soybean futures lost more ground on Friday with the market poised for a fifth week of fall, its longest losing streak in 30 months as rising global supplies anchor the market.
Wheat and corn were set to finish the week on a negative note after rising last week.
The Chicago Board Of Trade most-active soybean contract is down about half a percent this week, its fifth straight weekly loss. It is the longest weekly losing streak since September 2014.
Corn is down nearly 1 percent, losing nearly half the gains from the previous week. Wheat has lost 0.8 percent after gaining 0.4 percent in the previous week.
“We are caught is a bearish trend, U.S. soybean planting outlook looks good and South American production is so big,” said Kaname Gokon at brokerage Okato Shoji in Tokyo.
“We don’t see any recovery in prices unless there is a big weather issue in the United States.”
The soybean market found some support earlier this week after rains threatened to disrupt harvest in key supplier Argentina.
But the country’s soybean harvest accelerated in the past week despite heavy rains and floods in the western portion of the country’s growing area, the Buenos Aires Grains Exchange said on Thursday.
Brazil is shipping out record volumes of soybeans into the international market, providing stiff competition to exporters of U.S. products.
This week, consultancy Celeres raised its estimate of Brazil’s soybean crop to 113.8 million tonnes from 109.65 million last month. Broker INTL FCStone lifted its projection for the Brazilian crop to 111.6 million tonnes from 109.07 million previously.
Losses in U.S. agricultural markets come even as the country reported higher-than-expected weekly exports.
The U.S. Department of Agriculture reported export sales of old-crop wheat in the week to March 30 at 568,400 tonnes, above a range of trade expectations.
U.S. corn export sales topped 1.1 million tonnes during the period.
Global cereal production in 2017 is forecast to be close to a record level reached in 2016, the United Nations’ Food and Agriculture Organization said.
Commodity funds were net sellers of CBOT corn, wheat and soybean futures contracts on Thursday, traders said.
Grains prices at 0305 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 423.00 -0.25 -0.06% -0.94% 435.33 45 CBOT corn 360.75 0.00 +0.00% -0.62% 365.89 45 CBOT soy 940.00 -1.50 -0.16% +0.24% 995.48 19 CBOT rice 10.14 -$0.04 -0.39% +0.70% $9.78 75 WTI crude 52.66 $0.96 +1.86% +2.95% $50.24 77 Currencies Euro/dlr $1.064 -$0.001 -0.07% -0.30% USD/AUD 0.7526 -0.010 -1.34% -1.49% |
Currencies Euro/dlr $1.064 -$0.001 -0.07% -0.30% USD/AUD 0.7526 -0.010 -1.34% -1.49%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
Written by: Naveen Thukral @Reuters
The post “Soybeans face 5th week of fall, longest losing streak in 30 months” first appeared in Reuters