Grain futures were mixed on Tuesday, with wheat advancing, while soybeans and wheat edged lower. The rainy weather outlook in South America further pressured prices.
On the Chicago Board of Trade, soybeans futures for settlement in January traded at $13.1463 per bushel at 13:19 GMT, losing 0.5% on a daily basis. Prices swung between days high and low of $13.2888 and $13.1212 per bushel. The oilseed added 1.3% last week after gaining 3.1% in the preceding one. Soybeans registered a daily decline of 1.2% yesterday to close at $13.2112 per bushel, having reached a 10-week high at $13.4588, the strongest level since September 19th,
Prices were pressured amid growing speculations that US farmers increased sales, lured by higher prices.
Tim Emslie, the research manager for CHS Hedging Inc. in Inver Grove Heights, Minnesota, said, cited by Bloomberg: “The early rally in prices probably triggered increased sales by farmers who have been looking to sell cash beans above $13. South America crops are in good condition, so there is little issue at this time to support a weather premium.”
The USDA reported daily U.S. sales of soybeans topped 100,000 tons on four out of five days last week. Purchases came from China and unknown buyers. The US, which is the world’s second biggest exporter, may ship 39.5 million tons in the 2013-14 season, the USDA forecast on November 8th.
According to a report by the USDA, Brazil, the top soybean exporter, is projected to harvest 88 million tons, or 7.3% more than the past season’s record crop. After the last harvest, vessels at the country’s main ports had to wait more than a month to load soybeans, Santos, Brazil-based SA Commodities reported in March.
Prices were further pressured by outlook for continuing suitable weather across South America. DTN reported on Monday that scattered showers and thunderstorms are expected in the southern part of Brazil, which will disrupt any remaining planting, but will recharge soil moisture, favoring developing crops. According to the same website, favorable conditions in Argentina will continue. The expected dry weather during the next five days will help planting, which is slightly behind schedule.
Meanwhile, corn for delivery in March traded at $4.2313 per bushel at 15:09 GMT, down 0.30% on the day. Futures held in range between day’s high of $4.2688 and $4.2312 per bushel.
Elsewhere on the grains market, wheat futures for settlement in March traded at $6.6312 per bushel by 13:01 GMT, gaining 0.11% on daily basis. Prices jumped to a session high of $6.6462, while day’s low was touched at $6.6238 per bushel. The grain gained nearly 3% last week after it added 0.8% in the previous five-day period.
DTN reported that mild and dry weather is expected during the next five days in the Southern Plains crop areas. Later next week, a colder temperature trend is anticipated, bringing rain and probably snow. Winter wheat is probably well established through the region at this time. Milder weather early this week will favor the soft red winter wheat crop before colder weather develops late in the week.