Soybeans edge lower, near five-month high

February 19th, 2014

By:

Category: Grains, Oilseeds

(Reuters) – U.S. soybeans edged lower on Wednesday as traders banked profits after strong gains on less favorable conditions in South America, which added to concerns about tight U.S. soybean stocks.

FUNDAMENTALS

Chicago Board Of Trade March soybeans eased 0.1 percent to $13.60 a bushel, having firmed 1.8 percent on Tuesday to hit a high of $13.62-3/4 a bushel, the highest since September 13, 2013.

March corn fell 0.2 percent to $4.48-1/2 a bushel, having gained 1 percent in the previous session.

March wheat rose 0.1 percent to $6.12-3/4 a bushel, having closed up 2.6 percent on Tuesday when the grain hit a six-week high.

Analysts at Brazilian consultancy AgRural shaved 1.8 million tonnes off their estimate for Brazil’s 2013-14 soybean crop on Monday, saying drought in much of the country in recent weeks had reduced yields.

In Argentina’s main soybean-growing region, weeks of heavy rain have encouraged the spread of caterpillars that are eating into the 2013/14 season’s crop yields, a climate expert said on Monday.

U.S. Department of Agriculture pegs US wheat export inspections for the week ended Feb. 13 at 266,507 tonnes, the second weakest result for the past 14 months, analysts said.

The National Oilseed Processors Association said its members crushed 156.943 million bushels of soybeans in January, below the average analyst estimate for 162.4 million.

MARKET NEWS

The euro was holding broad-based gains on Wednesday, having darted higher against the yen and sterling, while the dollar took a hit from soft economic data and news that foreign investors had been heavy sellers of U.S. assets.

U.S. crude oil futures rose by over $2 a barrel on Tuesday to hit a fresh four-month high as high demand and cold weather drove gasoline and heating oil prices higher while traders eyed contract expirations later this week.

The S&P 500 and Nasdaq rose on Tuesday, following Wall Street’s biggest weekly gain of the year, as merger activity increased confidence that there is value in the stock market even as the benchmark index nears a record high.

Add New Comment

Forgot password? or Register

You are commenting as a guest.