December 3, 2020

 

US soy futures dip following Brazil rain forecasts

 


Soybean futures on the benchmark Chicago Board of Trade (CBOT) dropped to its lowest in 2 and 1/2 weeks on December 2, as traders said Brazil rain forecasts for its crop area triggered a round of long liquidation and profit-taking, Reuters reported.

 

Kyle Tapley, a meteorologist with Maxar, a space technology company, wrote in a client note that Brazil will have higher rainfall over the next week, which will be good for its corn and soybean crops. But the crop areas need follow-up rain to completely end the dryness.

 

January soybean futures on the CBOT ended 9 cents lower at US$11.53 per bushel, after dropping to US$11.42 and a 1/2, the lowest since November 13.

 

Commodity reserves maintain a big net long position in CBOT soybean futures, resulting in a market susceptible to long liquidation periods. Benchmark soybean futures are 21% up so far this year.

 

Datagro and StoneX increased their Brazil 2020/21 soybean crop estimates to 134.98 million tonnes and 133.9 million tonnes respectively.

 

Corn futures rallied from early weakness. Corn futures for March on the CBOT ended 3 cents higher at US$4.23 and 3/4 a bushel.

 

- Reuters