Saturday, September 23, 2023
HomeFoodSoybean, grain futures drop as traders shed risk


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Soybean, grain futures drop as traders shed risk

Chicago soybean and grain futures turned lower on Friday as improving growing weather led investors to anticipate that U.S. Midwest crop conditions will improve, traders said.

Corn and soybean futures had a particularly choppy trading session as a flurry of bearish signs prompted investors to shed risks at the end of the week.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 settled 10-3/4 cents lower at $13.07-1/2 a bushel. Corn Cv1 settled 9 cents lower at $4.87-1/4 a bushel and wheat Wv1 closed down 11 cents at $6.26-3/4 a bushel.

Soybean futures had been mixed earlier in the session and corn firmed, after the U.S. government forecast that dry conditions early in the growing season would mean smaller harvests of both this fall.

But forecasts from the U.S. Department of Agriculture’s (USDA) monthly World Agricultural Supply and Demand Estimates (WASDE) report fell below market expectations.

The corn crop, if realized, would be the second biggest on record due to large acreage and as growing conditions improved during the key development month of July.

Then traders shrugged off USDA news that farmers participating in U.S. crop subsidy programs reported “prevented plantings” by Aug. 9 of 1,421,488 acres of corn, 458,915 acres of soybeans and 640,761 acres of wheat.

“The simple fact is there simply wasn’t enough news today to drive the market higher,” said Karl Setzer, brokerage research lead with Mid-Co Commodities.

And with many weather forecast models now predicting that the U.S. Midwest won’t see a sharp heat wave at the end of August, “the majority of the trade is now expecting to see improving crop conditions next week,” Setzer said.

Meanwhile, Chicago Board of Trade wheat futures slumped as the WASDE report showed wheat ending stocks improving, particularly for hard-red winter wheat, said Craig Turner, commodities trader at Daniels Trading.

And the absence of further war escalation in the Black Sea also weighed on wheat futures, traders said.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Trafigura announces executive leadership changes

Trafigura Group Pte Ltd. has announced an evolution of its executive team to further strengthen leadership and focus across its global activities during a...

Woori, HMM, KOBC to buy Polaris in prospective $448 mln deal – report

Polaris Shipping Co. is poised to sell its entire stake at around 600 billion won ($447.5 million) to Woori Private Equity Asset Management Co....

Pyxis Tankers Announces Closing of Ultramax JV Investment

Pyxis Tankers, an international shipping company, reported that on September 14, 2023, the Company closed on its previously announced newly formed drybulk joint venture...

Korea’s STX denies rumor that it is backed by Chinese fund

South Korean general trading company STX Corp. has said its largest shareholder is a local investment firm, while refuting the false reports appearing through...

Navios Holdings Announces Receipt of Buyout Offer

Navios Holdings announced that its board of directors received an unsolicited non-binding proposal from N Shipmanagement Acquisition Corp. (“NSC”) to acquire all of the...

Baltic index snaps 11-session rally as rates for larger vessels ease

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index rises for 11th straight session on strong vessel rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

The elite of the Shipping Industry meets at the “Maritime Cyprus 2023” Conference

The main theme of this year’s Conference is “Shipping in Action: An agenda for...

Maritime industry explores nuclear power for ships as technology opens up

The maritime industry is exploring whether nuclear fuel can be used to power commercial...

Baltic index logs best day in almost two months on capesize demand

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Vopak: Agreement with Infracapital on sale of Rotterdam chemical terminals

Vopak announces that it has reached an agreement with Infracapital on the sale of its three chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven)...

Port Hedland Iron Ore Exports Edge Up 4% in August

Pilbara Ports Authority has delivered a total monthly throughput of 62.8 million tonnes (Mt) for August 2023, consistent with the August 2022 throughput. The Port...

Thessaloniki, Gdańsk ports to explore synergies

Thessaloniki Port Authority S.A is expanding its role as a port of international importance through a new cooperation with the Port of Gdańsk Authority...

Hapag-Lloyd CEO: Counteroffer for HHLA would not be in our interest

Hapag-Lloyd CEO Rolf Habben Jansen said on Thursday that it would not be in the container shipper’s interest to make an offer for HHLA...

MSC offers to buy stake in Hamburg port operator

MSC, the world’s biggest container shipping company, is offering to buy almost half of the main operator of Hamburg port, in a deal that...