Soybeans hit 6-1/2-year low on S.American export prospects

Commodities

U.S. soybeans fell for a second session on Monday to a more than six-and-a-half year low, hurt by an improved production outlook in South America and the election of a new president in Argentina who has promised to cut export taxes.

FUNDAMENTALS

* Chicago Board Of Trade front month soybeans were trading down 0.5 percent at $8.53-1/2 a bushel at 0150 GMT, near the session low of $8.50-3/4 a bushel, a 6-1/2-year low. Soybeans closed down 0.3 percent on Friday.

* December corn fell 0.1 percent to $3.63 a bushel, having closed down 0.3 percent in the previous session.

* December wheat rose 0.5 percent to $4.92-1/4 a bushel, after closing down by a similar amount on Friday.

* Wheat under pressure as weather outlook for key growing regions in the U.S. Plains and Midwest improves.

* A turn to wetter weather in South America removed concerns about dry soils that farmers encountered early in the planting process.

* Soybeans under some pressure after conservative opposition candidate Mauricio Macri won Argentina’s presidential election on Sunday, with the newly elected president promising to cut export taxes from one of the world’s largest exporters of oilseeds.

MARKET NEWS

* The euro languished near a seven-month low against the dollar on Monday, weighed down by expectations that the European Central Bank will ramp up its monetary stimulus next month.

* Crude oil futures lost ground on Monday in early Asian trading, as the global supply surplus pressured prices, but a cut in the number of U.S. oil rigs for an 11th week in the last 12 limited the falls.

[reuters]

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