Chicago soybeans were little changed on Monday after dropping to their lowest in more than a week earlier in the session as advancing U.S. harvest and forecasts of more rains in Brazil weighed on prices.
Corn edged higher although gains remained capped due to bumper U.S. harvest. The Chicago Board of Trade most-active soybean contract was unmoved at $9.78-3/4 a bushel, as of 0147 GMT, near the session low of $9.76 a bushel, weakest since Oct. 12.
Soybeans ended 0.8 percent lower on Friday. Corn added 0.2 percent at $3.45-1/4 a bushel and wheat climbed 0.1 pct to $4.26-1/2 a bushel. “The dry regions (of Brazil) did get some substantial rain over the weekend,” said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
“Very high temperatures though mean the gains in soil moisture will have been limited. Weather forecasters expect more rain in the next couple of weeks that may allay the market’s concerns. The market will push prices down if it gains more confidence that it will lift soil moisture.”
Brazilian farmers have planted 20 percent of the expected soy area so far in the 2017-18 crop, consultancy AgRural said on Friday, with some producers expressing concern regarding the progress of works due to lack of rains in key producing regions. Planting is roughly in line with a five-year average of 19 percent for this period of the year, but behind last year’s 29 percent.
Corn is being pressured as U.S. harvest advances amid good weather. The U.S. Department of Agriculture (USDA) said private exporters in the last day sold a total of 245,000 tonnes of U.S. corn to Spain and unknown destinations, along with 198,000 tonnes of soybeans to China.
Large speculators increased their net short position in CBOT corn futures in the week to Oct. 17, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and switched to a net long position in soybeans.