Chicago | Reuters — Chicago Board of Trade (CBOT) soybean futures drifted lower on Monday, amid ongoing pressure from a hefty global supply and signs of investors hunting for profits, traders said.
Corn futures spent much of the early session lower but ticked up by mid-day. However, a bearish outlook on corn and soy will likely continue to suppress prices, Karl Setzer, partner at Consus Ag Marketing, said.
CBOT wheat futures bounced after the May WK24 contract slumped to a new life-of-contract low on Monday, riding on momentum from rising Kansas City and MGEX wheat futures, Setzer said.
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CBOT’s most-active soybean Sv1 futures contract fell 4-3/4 cents to settle at $11.79-1/4 bushel, after reaching $11.89-1/4 a bushel – the highest price since Feb. 14. Corn Cv1 settled up 2 cents at $441-3/4 per bushel.
Wheat settled up 9-1/2 cents at $5.47-1/4 per bushel, despite exporters cancelling yet another sale for 264,000 metric tons of CBOT wheat destined for China on Monday. The announcement followed two cancellations last week totaling 240,000 tons of SRW wheat to China.
Falling Russian wheat export prices and high supply in the world market continue to smother demand for U.S. wheat, analysts said.
Soybeans could not shake pressure from a global glut, traders said. The USDA slightly lowered its Brazilian soybean crop forecast, but its outlook was above many private estimates and reminded dealers of plentiful South American supplies.
“The simple fact that we didn’t get a bullish (supply and demand) report has led to lackluster trading this morning,” Setzer said. “Most of what we’re seeing is fund positioning after the report.”
The U.S. has faced stiff competition from Brazil and Argentina’s grain harvests, with Argentina’s scheduled corn exports hitting their highest levels in at least five years, boosted by leftover stocks from the previous season.
“There’s not enough interest in the market to attract fresh buying, but funds are heavily short so that’s presenting liquidation,” Setzer said.
–Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore.
