GRAINS-Soybeans Hit 6-Week Low, Head for Second Weekly Loss

February 24th, 2017

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Category: Oilseeds

soybeans(Reuters) –  U.S. soybean futures held steady on Friday after hitting a six-week low on forecasts of plentiful global supplies, and were headed for their second straight weekly fall.

FUNDAMENTALS

The most active soybean futures on the Chicago Board Of Trade down 2 percent this week, extending falls over the past two weeks to nearly 5 percent.

Soybeans hit a low of $10.09-1/2 a bushel on Friday, the lowest since Jan. 12.

The most active corn futures down nearly 1 percent for the week, the second straight weekly fall.

The most active wheat futures up more than 2.5 percent for the week, recouping all the losses from the previous week.

The U.S. Department of Agriculture at its annual outlook conference

projected U.S. soybean plantings for 2017 at 88.0 million acres, a record high if realized. The figure was just above an average of trade expectations in a Reuters poll for 87.6 million acres.

Agroconsult, a Brazilian consultancy, on Wednesday raised its forecast for the country’s 2016-17 soy crop to 107.8 million tonnes, up from its Feb. 8 estimate of 105.3 million tonnes.

USDA projected U.S. 2017 plantings at 90 million acres, down 4.3 percent from 2016 and below an average of trade expectations in the Reuters poll for 91.0 million acres.

The USDA projected U.S. total wheat plantings for the 2017 harvest at 46.0 million acres, below an average of trade expectations in a Reuters poll for 46.85 million acres.

Argentina will likely harvest a record-large 18.3 million tonnes of wheat, Agriculture Minister Ricardo Buryaile said. The USDA currently forecasts Argentina’s crop at 15 million tonnes.

MARKET NEWS

The dollar clawed back some ground on Friday after skidding to a two-week low against the yen, but was still on track for weekly losses after the Federal Reserve meeting minutes disappointed dollar bulls.

U.S. oil prices fell on Friday after government data released late on Thursday showed stockpiles rose last week for a seventh straight week, although losses were muted as inventory growth was well below expectations.

U.S. stocks edged higher on Thursday, buoyed by energy stocks and a renewed pledge by President Donald Trump to chief executives of major U.S. companies to bring back millions of jobs to the United States.

 

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