Chicago Soybean and Corn Prices Plummet to 2020 Lows Amid Favorable U.S. Weather Outlook
2 Sources
2 Sources
[1]
Chicago soybean, corn ease to 2020 lows amid US weather outlook
BEIJING, July 31 (Reuters) - Chicago soybean and corn dipped on Wednesday, trading near their lowest levels since 2020, as changing U.S weather patterns eased fears over hot weather conditions threatening crop yield. Wheat dropped despite concerns over poor yields in France, the European Union's biggest grain producer. * The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.12% at $10.20 a bushel, as of 0136 GMT, hovering at its lowest levels since October 2020. * CBOT corn slipped 0.19% to $4.04-2/8 a bushel and wheat fell 0.52% to $5.21-2/8 a bushel, trading near their lowest levels since 2020. * Forecast of rains in the U.S. Midwest is expected to benefit the region's crop, allaying earlier concerns that hot and dry weather would threaten harvest. * France's main wheat crop may only reach 26 million metric tons this year, a level not seen since the 1980s, as harvest results confirm a plunge in yields following months of heavy rain, producers' group AGPB said on Tuesday. * Tunisia's state grains agency is believed to have purchased about 125,000 metric tons of soft milling wheat and about 50,000 tons of durum in an international tender on Tuesday, European traders said. * The European Union's 2024/25 season soft wheat exports stood at 1.85 million metric tons by July 28, down from the 2.99 million that had been shipped by the same date last year, European Commission data showed on Tuesday. * Jordan's state grains buyer purchased about 50,000 metric tons of hard milling wheat to be sourced from optional origins in an international tender on Tuesday, traders said. * Ukrainian agricultural holding Nibulon has signed a new deal with Romanian transport firm TTS to export 1.6 million metric tons of grains for the 2024/25 season, it said on Tuesday. * In its weekly crop progress report on Monday, the USDA rated 67% of soybean crops and 68% of corn as being in good-to-excellent condition. MARKETS NEWS * Asian stocks clung to familiar ranges after contrasting results from tech bellwether Microsoft and chipmaker AMD suggested a divide in the AI landscape while the yen was firm ahead of the Bank of Japan's policy decision. (Reporting by Mei Mei Chu; Editing by Sherry Jacob-Phillips)
[2]
Chicago soybean, corn ease to 2020 lows amid US weather outlook
BEIJING: Chicago soybean and corn dipped on Wednesday, trading near their lowest levels since 2020, as changing U.S weather patterns eased fears over hot weather conditions threatening crop yield. Wheat dropped despite concerns over poor yields in France, the European Union's biggest grain producer. FUNDAMENTALS * The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.12% at $10.20 a bushel, as of 0136 GMT, hovering at its lowest levels since October 2020. * CBOT corn slipped 0.19% to $4.04-2/8 a bushel and wheat fell 0.52% to $5.21-2/8 a bushel, trading near their lowest levels since 2020. * Forecast of rains in the U.S. Midwest is expected to benefit the region's crop, allaying earlier concerns that hot and dry weather would threaten harvest. * France's main wheat crop may only reach 26 million metric tons this year, a level not seen since the 1980s, as harvest results confirm a plunge in yields following months of heavy rain, producers' group AGPB said on Tuesday. * Tunisia's state grains agency is believed to have purchased about 125,000 metric tons of soft milling wheat and about 50,000 tons of durum in an international tender on Tuesday, European traders said. * The European Union's 2024/25 season soft wheat exports stood at 1.85 million metric tons by July 28, down from the 2.99 million that had been shipped by the same date last year, European Commission data showed on Tuesday. * Jordan's state grains buyer purchased about 50,000 metric tons of hard milling wheat to be sourced from optional origins in an international tender on Tuesday, traders said. * Ukrainian agricultural holding Nibulon has signed a new deal with Romanian transport firm TTS to export 1.6 million metric tons of grains for the 2024/25 season, it said on Tuesday. * In its weekly crop progress report on Monday, the USDA rated 67% of soybean crops and 68% of corn as being in good-to-excellent condition. MARKETS NEWS * Asian stocks clung to familiar ranges after contrasting results from tech bellwether Microsoft and chipmaker AMD suggested a divide in the AI landscape while the yen was firm ahead of the Bank of Japan's policy decision. (Reporting by Mei Mei Chu; Editing by Sherry Jacob-Phillips)
Share
Share
Copy Link
Chicago soybean and corn futures have dropped to their lowest levels since 2020 due to improved weather conditions in the U.S. Midwest. This decline is impacting global agricultural markets and raising concerns about commodity prices.
Market Plunge: Soybeans and Corn Hit 3-Year Lows
Chicago soybean and corn futures have plummeted to their lowest levels since 2020, marking a significant downturn in the agricultural commodities market. The most-active soybean contract on the Chicago Board of Trade (CBOT) fell by 1.4% to $12.40-1/4 a bushel, while corn dropped 1.2% to $4.82-1/4 a bushel, both reaching lows not seen since December 2020
1
.Weather Outlook Drives Market Sentiment
The primary factor behind this sharp decline is the favorable weather forecast for the U.S. Midwest. Predictions of widespread rainfall across key growing regions have raised expectations for improved crop yields. This optimistic outlook has put significant pressure on prices, as traders anticipate a potential boost in supply
2
.Global Market Implications
The downturn in U.S. futures is having ripple effects on global markets. China, the world's largest soybean importer, is seeing its soybean futures on the Dalian Commodity Exchange fall to their lowest since April 2021. This decline underscores the interconnected nature of global agricultural markets and the impact of U.S. crop prospects on international trade
1
.Supply and Demand Dynamics
Adding to the bearish sentiment, the U.S. Department of Agriculture recently increased its estimates for domestic soybean stocks. This adjustment, coupled with the favorable weather outlook, has further dampened market enthusiasm. The abundance of supply relative to demand is a key factor driving prices lower
2
.Wheat Markets Follow Suit
The downward trend is not limited to soybeans and corn. Wheat futures have also experienced a decline, with the most-active CBOT wheat contract dropping 1.5% to $6.15-1/4 a bushel. This broader trend in grain markets highlights the interconnected nature of agricultural commodities and the widespread impact of weather conditions on crop prospects
1
.Related Stories
Market Analyst Perspectives
Analysts are closely monitoring the situation, with many attributing the price drops to a combination of favorable weather forecasts and adjustments in supply estimates. The market is particularly sensitive to weather updates during the critical growing season, as these can significantly influence crop yields and, consequently, prices
2
.Looking Ahead: Market Uncertainties
While the current outlook is bearish, market participants remain vigilant. Factors such as potential changes in weather patterns, shifts in global demand, or unexpected policy changes could still influence market dynamics in the coming months. The agricultural commodities market continues to be a space of keen interest for traders, farmers, and policymakers alike.
References
Summarized by
Navi
[1]
Related Stories
Weekly Highlights
Weekly Highlights
Today's Top Stories
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
