U.S. soybeans fell on Monday following strong rises last week, as forecasts of large global supplies outweighed recent strong U.S. export sales.
Corn and wheat rose as export prospects for U.S. supplies brightened.
Chicago Board of Trade most active soybeans Sv1 fell 0.3% to $12.13-1/2 a bushel at 1118 GMT. Wheat Wv1 rose 0.1% to $7.34-3/4 a bushel, corn Cv1 rose 0.1% to $5.26-1/2 a bushel.
The U.S. Department of Agriculture (USDA) last week forecast supplies of corn and soybeans above market expectations.
“Soybeans are again seeing weakness from the USDA’s estimates of larger U.S. supplies,” said Matt Ammermann, StoneX commodity risk manager. “There have been regular U.S. export sales to China but of fairly modest sizes and a lot more U.S. sales are needed to support the market.”
U.S. exporters sold soybeans either to China or unknown destinations for a third consecutive day on Friday, with China taking 132,000 tonnes. GRA/TEND
“Corn is being pulled between the USDA’s estimates of larger supplies, some better-than-expected U.S. harvest results and a positive export outlook for U.S. corn,” Ammermann said.
Corn harvesting in France and Ukraine is looking slow which may mean opportunities in corn export markets for the U.S.
Wheat is being underpinned by tight supplies and hopes for more U.S. export sales, he said.
EU soft wheat exports in the 2021/22 season reached 8.37 million tonnes by Oct. 10, up from 6.02 million tonnes in the same time in 2020/21.
“EU wheat exports have been surging in recent weeks and higher European prices will be needed to brake the flow to retain European domestic supplies,” he said. “With Russia restricting wheat exports, this could create prospects for new U.S. sales, with the question raised about whether Chinese wheat demand could be switched from France to the U.S.”
Source: Reuters (Reporting by Michael Hogan in Hamburg, additional reporting by Colin Packham in Canberra, editing by Chizu
Nomiyama)