Soybean Prices Drop to 2020 Lows as Rains Improve US Crop Outlook
Source: The DairyNews
Chicago soybean prices fell to their lowest level since October 2020 on Monday, as forecasts for rain in the US crop belt eased concerns about the potential impact of hot and dry weather on crop yields, reported Reuters.
While corn prices remained steady, wheat saw gains driven by export demand, according to analysts.
Market participants are also awaiting the US Department of Agriculture's weekly crop progress and condition report for further insights.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 dropped 13-3/4 cents to $10.34-3/4 a bushel at 12:04 P.M CDT (1504 GMT). In contrast, CBOT corn edged up by 1 cent to $4.11 a bushel.
Initially, extreme heat and dryness in the US Midwest were expected to reduce corn and soybean crop production. However, recent weather forecasts suggest that these conditions will be temporary, analysts said.
"The story in soybeans and, to some extent, corn is that we have great weather across much of the Midwest and great crop conditions," noted Nathan Losey, a grain analyst at AgResource Company. "Right now, we're on track for a big crop."
Losey also pointed out that China has booked little new crop soybeans, while US farmers are still holding a substantial amount of old crop corn and soybeans.
Wheat Wv1 rose 7-1/2 cents to $5.31 a bushel, driven by demand following US export inspection data and poor conditions in the EU.
"Wheat is on the upper end on the inspections," said Jim Gerlach, president of A/C Trading.
The US Department of Agriculture reported export inspections of wheat for the week ending July 25 at 431,233 metric tons.
In the EU, ratings of French soft wheat fell again last week to an eight-year low, with only half of the crop now in good condition. Harvesting remains well behind average due to persistent wet weather throughout the growing season, which has adversely affected crops.
Market participants are also awaiting the US Department of Agriculture's weekly crop progress and condition report for further insights.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 dropped 13-3/4 cents to $10.34-3/4 a bushel at 12:04 P.M CDT (1504 GMT). In contrast, CBOT corn edged up by 1 cent to $4.11 a bushel.
Initially, extreme heat and dryness in the US Midwest were expected to reduce corn and soybean crop production. However, recent weather forecasts suggest that these conditions will be temporary, analysts said.
"The story in soybeans and, to some extent, corn is that we have great weather across much of the Midwest and great crop conditions," noted Nathan Losey, a grain analyst at AgResource Company. "Right now, we're on track for a big crop."
Losey also pointed out that China has booked little new crop soybeans, while US farmers are still holding a substantial amount of old crop corn and soybeans.
Wheat Wv1 rose 7-1/2 cents to $5.31 a bushel, driven by demand following US export inspection data and poor conditions in the EU.
"Wheat is on the upper end on the inspections," said Jim Gerlach, president of A/C Trading.
The US Department of Agriculture reported export inspections of wheat for the week ending July 25 at 431,233 metric tons.
In the EU, ratings of French soft wheat fell again last week to an eight-year low, with only half of the crop now in good condition. Harvesting remains well behind average due to persistent wet weather throughout the growing season, which has adversely affected crops.
