Chicago | Reuters—Chicago soybean futures dropped on Wednesday as the U.S. Department of Agriculture’s data showed rapid planting progress, and demand was slow, according to analysts.
Meanwhile wheat firmed slightly after U.S. crop ratings came in below market expectations, though they were pressured by broadly favorable harvest prospects in the northern hemisphere and sluggish international demand, analysts said.
Corn futures fell, with planting progress for the crop also moving quickly and showers having recently limited stress on the Midwestern corn crop, according to forecaster Commodity Weather Group.
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On the Chicago Board of Trade (CBOT) most active soybeans Sv1 lost 14 cents to $10.48-1/2 a bushel.
CBOT wheat Wv1 gained 1-3/4 cents at $5.30-1/4 a bushel and corn Cv1 fell 8-1/2 cents to $4.51 per bushel.
The USDA’s weekly crop progress report, released after the close of trading on Tuesday, showed 76 per cent of U.S. soybeans planted as of Sunday vs 66 per cent a week ago, and ahead of the five-year average of 68 per cent. Those numbers fell behind trade expectations of 78 per cent in a Reuters poll of analysts, however.
Meanwhile, the USDA said U.S. farmers had planted 87 per cent of their intended corn acres by Sunday, up from 78 per cent a week earlier and ahead of the five-year average of 85 per cent.
“Demand has slowed considerably for both corn and soybeans, which is normal for this time of year as South American supplies dominate; leaving the early season planting progress and growing conditions as the primary driver of market direction,” said Brian Hoops, president of Midwest Market Solutions.
Corn and soybeans are under pressure from expectations of a large crop in Brazil, with agribusiness consultancy Datagro this week increasing its forecasts for the country’s 2024/2025 crops.
And in wheat, the USDA showed only 45 per cent of U.S. spring wheat in good to excellent condition, below the lowest in a range of analyst expectations, which gave support to futures.
—1 acre = 0.405 hectares
—Additional reporting by Peter Hobson in Canberra and Gus Trompiz in Paris
