Chicago soybeans decline despite bullish USDA planting data
Chicago soybean prices fell on Friday, pressured by lower oil prices and a broader retreat in the grain markets, even as traders shrugged off a USDA report showing soybean plantings were much below expectations.
Corn and wheat prices continued their slide from the previous session after the U.S. Department of Agriculture’s (USDA) report showed above-consensus estimates on U.S. plantings and quarterly grain stocks.
Oil prices eased on Friday as lingering fears of a recession demand weighed on sentiment, which also lent downward pressure on commodity markets in general.
However, the USDA said that soybean plantings totalled 88.325 million acres for 2022, much lower than trade expectations at 90.446 million acres.
The most-active soybean contract on the Chicago Board of Trade (CBOT) shed 1.68% to $14.33-1/2 a bushel.
Chicago corn slipped 0.77% to $6.15 a bushel. Wheat fell 0.79% to $8.77 a bushel.
While grain prices got downward pressure from the USDA report, the market is not quite buying its data on soybeans, said a China based trader.
“The USDA also said it will also resurvey some places,” said the trader.
Corn plantings totalled 89.921 million acres (36.39 million hectares), topping analysts estimates at 89.861 million acres. Quarterly stocks of corn were also above trade estimates, according to the USDA report released on Thursday.
The USDA said it will collect updated information on 2022 planting acreage of major crops, including soybeans, in some states next month, with any necessary revisions appearing in its Aug. 12 monthly crop production report.
Chicago wheat touched a four-month low in the previous session after the USDA report showed quarterly grain stocks and spring wheat acres above consensus forecasts.
An Argentine truckers strike ended on Thursday, after some unions upset with diesel shortages reached a deal to lift the one-week protest around the major port of Rosario, which is expected to help the flow of grains for export going forward.
Commodity funds were net sellers of Chicago Board of Trade corn, wheat and soyoil futures contracts on Thursday and net buyers of soymeal, traders said.
The MSCI global stock index notched its biggest first-half of a year percentage drop on record on Thursday, while the U.S. benchmark S&P 500 had its steepest percentage drop for the first six months since 1970.
Source: Reuters (Reporting by Hallie Gu and Dominique Patton; editing by Uttaresh.V and Amy Caren Daniel)