NEW YORK, Jan 8 (Reuters) – On Monday, Chicago soybeans climbed for the first time in three days, with bargain-buying supporting prices, albeit large old-crop supply and favorable weather in top exporter Brazil restrained the market’s upside potential.
Corn recovered from last week’s losses, but wheat lost ground.
FUNDAMENTALS
- As of 0107 GMT, the most active soybean contract on the Chicago Board of Trade (CBOT) was up 0.2% to $12.59 a bushel. The market is trading near its lowest level since mid-October.
- Corn rose 0.2% to $4.61-3/4 per bushel, while wheat fell 0.5% to $6.13 per bushel.
- Soybean futures are facing headwinds as rains alleviated concerns about crop losses in Brazil, the world’s largest soybean exporter.
- In the soybean market this year, US exporters are anticipated to encounter severe competition from Brazil.
- According to forecasts provided on Friday by Anec, a grain exporters group, Brazilian soybean exports would reach at least 1.3 million metric tons in January, a significant increase over the 940,000 tons exported in the same month last year.
- The United States Department of Agriculture (USDA) stated on Friday that export sales of U.S. 2023/24 soybeans were 201,600 metric tons in the week of Dec. 28, falling short of analysts’ predictions of 500,000 to 1,300,000 tons. Weekly corn and wheat sales in the United States also fell short of estimates.
- The USDA is set to release a quarterly report on US grain stocks as well as monthly data on global supply/demand this week.
- In a sign of easing concerns about global food price inflation, the United Nations Food and Agriculture Organization’s World Price Index concluded last year around 10% lower than projected for 2022, with December readings also lower than the previous month.
- The Food and Agriculture Organization’s (FAO) price index, which tracks the most widely traded food commodities globally, averaged 118.5 points in December, a 1.5% decrease from November and a 10.1% decrease from December 2022 levels.
- According to regulatory data issued on Friday, large speculators increased their net short position in CBOT corn futures in the week ending Jan. 2.
- According to the Commodity Futures Trading Commission’s weekly commitments of traders report, noncommercial traders, which include hedge funds, boosted their net short position in CBOT wheat while decreasing their net short position in soybeans.
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