Chicago | Reuters — U.S. soybean futures rose on Thursday on a fresh round of export sales and the prospect of Argentina’s new President Javier Milei devaluing the nation’s currency after he takes office over the weekend, analysts said.
Wheat and corn finished higher as traders awaited Friday’s monthly world crop report from the U.S. Department of Agriculture (USDA).
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 ended up 16-1/4 cents, or 1.3%, at $13.11-3/4 a bushel.
The rally comes three days before Argentina, the world’s top exporter of soymeal and soyoil, inaugurates Javier Milei, the nation’s new libertarian president-elect who has pledged to dollarize the economy.
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“We’re hearing that with this new president coming in Argentina and that possibly, as soon as Monday, there’s going to be some type of big devaluation,” said Joe Davis, director of commodity sales at Futures International. “The details are not forthcoming yet. I don’t expect us to get too wild on our moves today.”
Additional support in soybeans stemmed from the USDA confirming private sales of 121,000 metric tons of U.S. soybeans for shipment to unknown destinations in the 2023/24 marketing year.
In addition, Brazilian crop agency Conab cut its forecast for the country’s 2023/24 soybean crop to 160.177 million metric tons, from its previous monthly forecast of 162.420 million, citing planting delays. However, the crop would still be Brazil’s largest ever.
Rain showers in parts of Brazil where drought has threatened crops have pressured soybean future prices this week, but concerns remain about an unfavourable start to the growing season.
CBOT corn Cv1 settled up 3-3/4 cents, or 0.8 per cent, at $4.88 a bushel, while wheat Wv1 finished up 8-3/4 cents, or 1.4 per cent, at $6.42-1/4 per bushel.
Attention in grain markets is turning towards Friday’s monthly world crop report from the USDA, which will include updated crop production estimates for South America.
Analysts surveyed by Reuters expect the USDA to lower its estimates of Brazil’s 2023/24 soybean and corn crops.
In its weekly export sales report, the USDA reported net U.S. corn sales in the week ended Nov. 30 at 1,288,900 metric tons and wheat sales of 356,400 tons, both in line with trade expectations.
–Additional reporting for Reuters by Gus Trompiz in Paris and Peter Hobson in Canberra.
