(Reuters) – U.S. soybeans fell on Monday for the fourth consecutive session as traders locked in profits encouraged by late season rains, which may rescue some of the oilseed crop following the worst drought in 56 years across the U.S. Midwest.
FUNDAMENTALS
Chicago Board of Trade November soybeans fell 0.45 percent to $17.28-3/4 a bushel after closing down 1.14 percent in the previous session.
December wheat rose 0.22 percent to $9.07 a bushel, having jumped 1.74 percent on Friday.
December corn lost 0.25 percent to $7.97-1/2 a bushel, having closed down slightly on Friday.
Analytical firm Informa Economics cut its U.S. soy crop forecast by 5 percent to 2.639 billion bushels, a deeper cut than many had expected.
Private analysts on average expected the USDA to trim its crop forecast on Wednesday to 2.657 billion bushels from 2.692 billion in August, although some expected a slight increase because of rains in recent weeks across northern and eastern Midwest.
Wheat supported by dry weather in key production areas of Australia, the world’s No. 2 exporter, and a dry pattern in the southern U.S. Plains wheat belt ahead of autumn planting.
Corn draws support from expectations for another deep cut by the U.S. Department of Agriculture to its production forecast next week.
Analysts on average expected the government to reduce its corn production forecast to 10.380 billion bushels, down 3.7 percent from its August forecast and the lowest in nine years.
MARKET NEWS
The euro hovered near four-month highs on Monday, while commodity currencies also held firm after soft data in the United States and China reinforced hopes of more stimulus from the world’s two biggest economies.
Oil prices rose on Friday in volatile trading after a disappointing U.S. August jobs report weakened the dollar and bolstered expectations for stimulus from the U.S. Federal Reserve, even while denting the outlook for petroleum demand.
U.S. stocks held steady at four-year highs on Friday, closing out their best week since June as a sharply disappointing jobs report only fueled expectations that the Federal Reserve would act to stimulate the economy next week.
