November 16, 2023

 

Decline for Chicago soybean futures on November 15 following days of rally

 

 

Chicago soybean futures inched down on November 15 after rallying for the last several days to August highs, as Brazil's improving weather outlook overshadowed record US soybean crushings last month.

 

Both corn and wheat futures ticked more than 1% lower in mid-session trading.

 

The most-active soybean contract Sv1 on the Chicago Board of Trade (CBOT) was down 0.32% at US$13.85-1/4 a bushel by 1700 GMT. Earlier on November 15, it reached its highest since August 30 at US$13.98-1/2 a bushel, surpassing a two and a half month peak struck on November 14.

 

"We're taking a little pause after the recent rally here," said Jack Scoville, market analyst at The Price Futures Group. "We're still very much paying attention to the weather situation in South America."

 

A heatwave in Brazil, the world's biggest soybean exporter, has amplified concerns about dry planting conditions for soybeans in northern and central regions. However, rain forecast for next week could bring relief and turn attention back to large global supplies of the oilseed, analysts said.

 

The showers are "not expected to be drought busters by any stretch of the imagination," Scoville said. "We'll probably be off to the races again once it's proven that it wasn't a big generalised soaking rainfall."

 

Brazilian weather outweighed data showing US soybean processors crushed a record amount of soybeans in October, while end-of-month soyoil stocks fell to the lowest in almost nine years.

 

CBOT soyoil BOF24 rose 0.69% to 52.32 cents per lb, while soymeal SMc1 was off 1.35% at US$467.2 per short tonne.

 

Market participants were also monitoring the outcome of a highly anticipated meeting this week between US President Joe Biden and Chinese President Xi Jinping for further indications on agricultural trade.

 

China is the world's top soybean importer.

 

- Reuters