U.S. soybeans, corn ease on record supply pressure

November 6th, 2014

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Category: Grains, Oilseeds

Soybean Harvest 450x299(Reuters) – Chicago corn and soybean futures edged lower on Thursday, giving up some of the previous session’s gains amid expectations that rapid harvesting of record U.S. crops would boost global supplies.

Wheat was steadier after two consecutive sessions of decline under pressure from ample European and Black Sea supplies, which are preventing U.S. wheat from winning business in Egypt.

Chicago Board of Trade spot-month soybeans slid 0.4 percent to $10.14-3/4 a bushel by 0238 GMT, while corn dipped 0.1 percent to $3.69-3/4 a bushel. Wheat was unchanged at $5.24-3/4 a bushel after dropping 2.5 percent in the previous two sessions.

“Crop forecasters are still bumping up their forecasts as potential harvest issues recede with sustained good weather,” Tobin Gorey, an analyst at Commonwealth Bank of Australia, said in a research note to clients.

“Moreover, that good harvest weather in the U.S. should continue. As will better planting and (crop) emergence weather in South America.”

U.S. corn and soybeans rose more than 1 percent in the previous session but could not hold on to the gains as U.S. farmers are expected to finish harvesting of record crops in the coming weeks, boosting global supplies.

A national strike by Argentine grain inspectors was lifted after only a few hours on Wednesday as talks were set to start on Thursday between the URGARA trade union and government officials, a representative for the workers said.

Still, the soybean market is likely to find a floor on the back of strong demand from top importer China.

China’s monthly soybean imports are expected to jump around 38 percent in November as buyers in the country, spurred by improving crush margins, race to secure cheap supplies from the massive U.S. harvest.

U.S. wheat faces stiff competition from European suppliers. On Wednesday, Egypt, the world’s top buyer of wheat, again bypassed U.S. offerings in its latest tender in favour of cheaper supplies from France and Ukraine.

Export prices for Russian wheat rose sharply last week, supported by a slump in the rouble, which has lost about a quarter of its value against the dollar in 2014 because of the Ukraine crisis.

 

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