December 11, 2023


US soybean futures dipped on December 8 following USDA's estimate of Brazilian harvest



US soybean futures fell on December 8 after the US Department of Agriculture's (USDA) updated estimate of Brazil's soybean harvest fell toward the high end of trade expectations, easing concerns about global supplies of the oilseed.


Corn fell after the USDA left its forecasts for corn production in Brazil and Argentina unchanged.


Declines in soybean futures set the tone. The USDA pegged Brazilian soy production at 161 million metric tonnes in a monthly report, down from its November estimate of 163 million metric tonnes but still the largest crop on record, if realised. Analysts surveyed by Reuters on average expected an estimate of 160.16 million metric tonnes.


"It (USDA's report) was in line with pretty much what we were expecting, even that Brazil soybean number," said Karl Setzer, partner at Consus Ag Consulting. "I just can't see anything here that would warrant altering your market stance."


The central and northern regions of Brazil have grappled with high temperatures, while southern areas faced excessive rains. However, at 161 million tonnes, the current 2023/24 soy crop is still on track to surpass the country's previous record crop from 2022/23, which the USDA estimated at 160 million tonnes.


Chicago Board of Trade (CBOT) soybeans Sv1 settled down 7-3/4 cents at US$13.04 per bushel, retreating after setting a one-week high at US$13.30-3/4.


For the week, the contract fell 21 cents a bushel or 1.6%.


CBOT corn Cv1 settled down 2-1/2 cents at US$4.85-1/2 a bushel, finishing the week relatively flat.


- Reuters

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