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Soybeans ease on Argentine supplies; wheat and corn extend gains


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SINGAPORE — Chicago soybean futures lost ground on Tuesday, with prices coming under pressure on expectations of higher farmer sales in Argentina, a leading producer and exporter of the oilseed.

Wheat and corn gained for a second consecutive session.

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FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.5% to $14.14 a bushel, as of 0027 GMT. Wheat rose 1.1% to $8.19-1/2 a bushel and corn added 0.7% to $6.70-1/2 a bushel.

* Argentina’s farmers said on Monday that the government’s decision to improve the exchange rate for soybeans exported in September is a temporary “patch” that will likely boost sales of the crop during the month, but fails to solve root issues.

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* Traders were also starting to adjust positions ahead of the U.S. Department of Agriculture’s monthly supply/demand reports on Sept. 12. Some private analysts have revised their U.S. 2022 corn yield estimates lower in recent days, fueling expectations that the USDA might do the same in its upcoming reports.

* Commodity brokerage StoneX last week lowered its U.S. corn yield estimate to 173.2 bushels per acre (bpa) from 176.0 in its previous monthly report. However, for soybeans, StoneX raised its yield forecast to 51.8 bpa, from 51.3 last month.

* In Russia, wheat export prices fell last week under pressure from the new crop, analysts said on Monday, adding that demand from importers was rising.

* Russian prices for wheat with 12.5% protein content and for supply from Black Sea ports fell by $5 to $310 a tonne free on board at the end of last week, the IKAR agriculture consultancy said in a note.

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* However, Ukraine is also facing a fall in wheat sowing for next year’s crop, with the Ukrainian Agrarian Council on Thursday warning the area may plunge by 30% to 40%.

* Brazilian farmers will spend more to nourish crops like soybeans and corn this season, according to StoneX, reflecting a rise in prices exacerbated by the conflict in Ukraine.

* Based on StoneX calculations, first corn farmers will reap the biggest crop in seven years, just below 30 million tonnes, representing a 13% rise from last year.

* At the same time the 2022/2023 Brazilian soybean crop is expected to be a record of 153.6 million tonnes, up 24% from last year, StoneX said.

* Large speculators raised their net long position in CBOT corn futures in the week to Aug. 30, regulatory data released on Friday showed.

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* The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans.

MARKET NEWS

* European stock indexes fell on Monday, the euro dropped below 99 cents for the first time in twenty years and European gas prices surged after Russia said its main gas supply pipeline to Europe would stay shut.

DATA/EVENTS (GMT) 0130 Australia Current Accounts Balance SA Q2 0130 Australia Net Exports Contribution Q2 0430 Australia RBA Cash Rate Sept 0600 Germany Industrial Orders MM July 0600 Germany Manufacturing O/P Cur Price SA July 0600 Germany Consumer Goods SA July 0830 UK All-Sector PMI Aug 1345 US S&P Global Comp, Svcs Final PMIs Aug 1400 US ISM N-Mfg PMI Aug (Reporting by Naveen Thukral; Editing by Rashmi Aich)

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