CBOT soy futures edge lower, corn unaffected on plantings

CBOT soy futures edged lower on Tuesday (May 19) and corn was largely unchanged as improvement in US plantings weighed on the market, a day after gains on strong fund buying.

 

Wheat fell 0.7 percent as rising global supplies continued to pressure the market.

 

US corn plantings are 62 percent complete, the US Department of Agriculture (USDA) said after the market closed on Monday (May 18), a sharp improvement over the previous week but well-below average due to a wet spring.

 

Soy seedings were estimated at 25 percent, from 14 percent planted a week ago. During an average year, 44 percent of soy are planted at this time.

 

ANZ's agricultural commodity strategist Doug Whitehead said USDA's planting progress report showed reasonably good progress in plantings, adding that weather is clearer this week and the likelihood is that the growers will be able to get in the remainder of corn crop planted.

 

Soy market rose to a 7-A½ month peak last week on China's firm soy demand and lower yields in drought-stricken Argentina, while Corn also rose to a 6-A½ month high on delay in plantings.

 

USDA last week said US soy supplies this year would fall to the lowest level in five years as exports continue at a brisk pace.

 

USDA on Monday said Egypt bought 120,000 tonnes of US soy for shipment this year and China bought 116,000 tonnes for delivery next year.

 

Traders said a group of South Korean feedmillers has issued a tender to buy up to 220,000 tonnes of worldwide corn and 220,000 tonnes of South American or US soymeal.

 

CBOT July soy fell 0.4 percent, or 4-A¼ cents, to US$11.42-A¼ per bushel and July corn was up half a cent at US$4.22 a bushel, while wheat for July shipment lost 0.7 percent to US$5.86-A½ per bushel.

 

Analysts said wheat, which has gained on spillover strength from soy in recent weeks, is likely to be under pressure from growing global supplies.

 

Spring wheat sowings, which also have benefited from drier weather especially in the northern US Plains, rose to 50 percent, an increase from 35 percent last week.