Soybeans edge lower, concerns over South American crop outlook cap losses

U.S. soybean futures edged lower on Friday, though concerns about production in South America due to adverse weather conditions capped losses.

FUNDAMENTALS

The most active soybean futures on the Chicago Board Of Trade were down 0.4% to $14.04-1/2 a bushel by 0226 GMT, after closing down 0.2% on Thursday.

Soybeans little changed for the week after three straight weekly gains.

The most active corn futures down nearly 3% for the week, its biggest weekly loss since Jan 22.

The most active wheat futures down more than 1.5% for the week, the first weekly loss in three weeks.

The Buenos Aires Grains Exchange said it could cut its harvest forecast for 2020/21 soy production in Argentina, the world’s top soymeal exporter, if it does not rain sufficiently in key producing areas over the weeks ahead.

The U.S. Department of Agriculture will update its estimates on global supplies in a monthly report due on Tuesday.

Record U.S. soybean crushings and exports are already projected to shrink U.S. soybean stocks to a mere 9-1/2 day supply ahead of the next North American harvest.

In Ukraine exporters could boost grain shipments in the July-June season as harvests may reach a record high, the deputy economy minister in charge of agriculture said.

MARKET NEWS

The dollar held firmly near three-month highs on Friday, after surging overnight as Federal Reserve Chair Jerome Powell stuck with dovish rhetoric despite a recent spike in bond market volatility.

Oil prices rose in early trade, adding to big gains overnight after OPEC and its allies agreed to not increase supply in April as they await a more solid recovery in demand from the coronavirus pandemic.

Asian stocks skidded as rising U.S. Treasury yields again rattled equity investors while hoisting the dollar to a three-month high, which in turn dragged the Japanese yen to an eight-month trough.
Source: Reuters (Reporting by Colin Packham; Editing by Rashmi Aich)