Soybean Prices felling on Record Brazil Crop Production

soybean futures

SINGAPORE: Chicago Soybean Oil lost ground on Tuesday, with prices dropping for the first time in four sessions, as expectations of an all-time high Brazilian crop and concerns over economic growth in top consumer China weighed on the market.

Wheat fell, while corn slid from a two-week high.

The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 0.7% to $15.16-3/4 a bushel, as of 0406 GMT. Wheat fell 1% to $7.36-1/2 a bushel and corn gave up 0.7% to $6.70 a bushel.

Brazilian soybean growers will harvest a record soy crop just below 153 million tonnes in the 2022/2023 cycle, driven by a rise in planted area and favourable weather in most parts of the country, according to a Reuters poll on Monday.

Many Asia shares slipped after Beijing released weak fourth-quarter economic data, although investors’ expectations for a strong China rebound remained high even as the global economy edges closer to recession.

Russian wheat prices in mid-January are down slightly amid increased competition from other exporters and high supply volumes, analysts said on Monday.

Large speculators cut their net long position in CBOT corn futures in the week to Jan. 10, regulatory data released on Friday showed.

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