- Soybeans rise as dollar loses more ground
- Improved outlook for S.American crop caps prices
- Corn up after 3-day decline, ample supply limit gains
(Updates prices, changes dateline/byline)
By Naveen Thukral and Sybille de La Hamaide
SINGAPORE/PARIS, Jan 31 (Reuters) – A fall in the dollar
helped Chicago soybean futures edge higher on Tuesday after they
touched their weakest level in more than two weeks in the
previous session as an improving crop outlook in Brazil and
Argentina weighed on the market.
Corn was firm after three sessions of decline and wheat was
unchanged with the rise in grains capped by plentiful global
supplies.
The Chicago Board of Trade’s most-active soybean contract
was up 0.15 percent to $10.24-1/4 a bushel by 1135 GMT
after dropping 2.5 percent in the last session, when prices hit
their lowest since Jan. 12 at $10.19-1/4 a bushel.
Corn rose 0.07 percent to $3.58 a bushel and wheat
was unchanged at $4.14 a bushel.
The dollar was on course for its worst start to a year since
2008 on Tuesday as concerns over the broader shape of policy
under new President Donald Trump outweighed the expectations of
higher U.S. inflation that dominated the end of last year.
For the month, soybeans are up 2 percent, recouping some of
December’s losses, and corn has gained 1.7 percent in January,
extending two-month gains to 2.7 percent. Wheat was up 1.5
percent in January, rising for a second month.
Soybeans were capped by improving weather forecasts that
have bolstered crop prospects in Brazil, Argentina and Paraguay.
“Argentina crop losses were not that significant. Our view
is that losses were much smaller than expected from flooding
earlier this month,” said Rajesh Singla, head of agriculture
research at Societe Generale. “Brazil is doing well. If you look
at it, there are no supply side issues.”
U.S. Commodity Futures Trading Commission data showed
non-commercial traders raised their net long position in CBOT
soybeans in the week to Jan. 24 to 153,252 lots, the largest in
six months, leaving the market vulnerable to long liquidation.
In corn, the CFTC showed large speculators flipped from a
net short to a net long position for the first time since July.
Corn has been under pressure from concerns of potential
disruption to U.S. exports to Mexico amid a souring of relations
between the two countries.
Mexico was the top buyer of U.S. corn in the 2015-16
marketing year and the second-largest buyer of U.S. wheat, U.S.
Department of Agriculture data showed.
Prices at 1135 GMT
Last Change Pct End Ytd
Move 2016 Pct
Move
CBOT wheat Sep 414.00 0.00 0.00 408.00 1.47
CBOT corn Dec 358.00 0.25 0.07 352.00 1.70
CBOT soy Nov 1024.25 1.50 0.15 1004.00 2.02
Paris wheat Dec 167.00 0.00 0.00 168.00 -0.60
Paris maize Nov 170.00 0.00 0.00 168.50 0.89
Paris rape Nov 428.00 1.25 0.29 408.50 4.77
WTI crude oil 52.39 -0.24 -0.46 53.72 -2.48
Euro/dlr 1.07 0.00 0.13
Most active contracts – Wheat, corn and soy US cents/bushel,
Paris futures in euros per tonne
(Reporting by Naveen Thukral and Sybille de La Hamaide; Editing
by Richard Pullin/Mark Heinrich)
agriculture.com