Wheat dros for 2nd session on higher U.S planting, soybeans ease
Chicago wheat futures lost more ground on Thursday after the U.S. Department of Agriculture (USDA) projected that farmers planted more acres than traders anticipated, while soybeans shed previous day’s gains to post the first decline in three sessions.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.5% at $7.53-3/4 a bushel, as of 0159 GMT. Soybeans fell 0.6% to $13.90-1/2 a bushel and corn gave up 0.3% to $5.97-1/2 a bushel.
U.S. growers planted 34.397 million acres of winter wheat, up 2% from 2021, the USDA said in a crop report. Analysts surveyed by Reuters expected 34.255 million.
The USDA pegged domestic wheat ending stocks at 628 million bushels, above the average estimate for 608 million, and the global carryout at 279.95 million tonnes, above expectations for 278.67 million.
The U.S. soybean crop that farmers harvested in the fall of 2021 was the largest on record, as yields were bigger than previously estimated, the agency said.
However, hot and dry conditions in southern Brazil and parts of Argentina have raised doubts about soybean and corn harvest prospects. Brazilian food supply and statistics agency Conab on Tuesday lowered its 2021/2022 forecast for the country’s soybean and corn production.
Brazilian consumers could see another round of stiff rises in food prices this year as meatpackers grapple with higher costs due to a drought hurting the crops used to feed livestock.
Argentine farmers are expected to harvest 48 million tonnes of corn in the 2021/22 season, the Rosario grains exchange said on Wednesday, a smaller harvest than previously estimated because of a drought and high temperatures in key farm areas in the last month.
Commodity funds were net buyers of CBOT soybean, soymeal and soyoil futures contracts on Wednesday and net sellers of corn and wheat futures, traders said.
World stocks rose on Wednesday while U.S. Treasury yields and the dollar weakened, after the latest U.S. inflation data showed price pressures surging but within expectations, apparently suggesting the Federal Reserve will not have to hike interest rates too aggressively.
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Source: Reuters (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)