Chicago | Reuters — Chicago soybean futures dropped on Monday for a fourth consecutive session as rainfall in Argentina’s parched growing areas diminished concerns over crop damage.
Wheat fell to nearly 16-month lows as snow and rain across parts of the U.S. Great Plains brought needed moisture to winter wheat crops, while corn followed wheat and soybeans lower.
Chicago Board of Trade most-active soybeans ended down 16-1/4 cents at $14.90-1/4 a bushel after earlier reaching $14.79-3/4, its lowest level since Jan. 10 (all figures US$).
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Wheat lost 21-1/2 cents to $7.20 a bushel after touching $7.12-1/2, its lowest level since Sept. 30, 2021.
Corn fell 10 cents to $6.66-1/4 a bushel.
Rainfall in Argentina over the weekend is expected to aid soybean crops, though persistent dryness in recent weeks may have already damaged much of the crop. More rainfall is expected through the next week.
“I don’t expect the crop conditions in Argentina to decline going forward. If anything, they’ll stabilize or improve over the next month,” said Terry Reilly, senior analyst at Futures International.
Tight stockpiles of U.S. soybeans could add support, said Jeff French, owner of Ag Hedgers.
“You’re going to see people step in and buy this break and get some protection to the upside,” French said. “It’s raining in Argentina, but that doesn’t do anything for our old-crop supplies up here.”
U.S. exporters readied 1.81 million tonnes of soybeans for inspection during the week ended Jan. 19, a 17.56 per cent decline from the week prior, according to the U.S. Department of Agriculture, but the figure was near the high end of analyst expectations.
Wheat was pressured by rain and snowfall across the U.S. Plains that will aid soil moisture for parched winter wheat crops in the region.
“We’re supposed to get additional storms later this week,” Reilly said. “I think the precipitation is very welcome and helps the soil moisture situation heading into the spring.”
Corn export inspections of 727,643 tonnes fell below week-ago totals, while wheat export inspections of 334,217 tonnes were slightly above last week’s inspections. Both were in line with analyst predictions.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
