Chicago soybeans slip after three-day rally
BEIJING/PARIS: Chicago soybean futures eased on Wednesday as traders booked profits after a three-day price rally driven by strength in soyoil and the broader energy market, with continuing tariff uncertainty also pressuring prices.
The most active soybean contract on the Chicago Board of Trade was 0.2% down by 1055 GMT at $10.71-3/4 a bushel, though still hovering near a one-month high.
Support for agricultural commodities such as soybeans and corn has been underpinned by rising energy prices, fuelled by escalating tensions between Israel and Iran. Higher crude oil prices improve the competitiveness of soyoil and corn as biofuel feedstocks.
Market participants are keeping a close eye on developments in U.S. biofuel policy.
A tax bill proposed by Senate Republicans on Monday would extend a clean fuel tax credit through 2031 but reduce its value by 20% for biofuels made from feedstocks produced outside the United States.
Chicago soybeans slip on favourable weather, weaker soyoil
Traders are also monitoring tariff developments between Washington and Beijing, the largest buyer of U.S. soybeans.
China's move to reduce soymeal use in animal feed could lower soybean imports by about 10 million metric tons by 2030, easing its reliance on foreign supply.
In top producer Brazil, soy exports are forecast to reach 14.37 million tons in June, up from 14.08 million tons the previous week, said Anec, a Brazilian trade group representing grain exporters.
Corn futures rose 0.17% to $4.32-1/4 a bushel, supported by uncertainty over crop weather in the U.S. Midwest, with traders awaiting more definitive forecasts.
Wheat futures rose 0.55% to $5.52 a bushel, buoyed by a slower than average U.S. winter wheat harvest, which reached 10% completion compared with a five-year average of 16%.
Farm office FranceAgriMer has increased its forecast for French soft wheat exports within and outside the European Union in 2024/25, but the EU's biggest grain producer is still on course for its worst wheat export campaign this century after a rain-hit harvest.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
FranceAgriMer raises soft wheat export forecasts, cuts stocks
PARIS: Farm office FranceAgriMer on Wednesday increased its forecast of French soft wheat exports, both within and outside the European Union, in 2024/25, but the European Union's biggest grain producer is still on course for its worst wheat export campaign this century after a rain-hit harvest. In supply and demand data, FranceAgriMer projected French soft wheat exports outside the EU this season at 3.25 million metric tons, up from 3.20 million projected last month, now 68% below last season's level, while shipments within the EU in 2024/25 were pegged at 6.64 million tons from 6.55 million expected in May, now 5.6% above the 2023/24 volume. Despite the upward revision, the forecasts for total soft wheat exports and for shipments outside the EU remained the lowest in the office's records going back to 1996/97. In addition to last summer's dire harvest, French exports have been hit by stiff competition from the Black Sea region and a diplomatic rift between France and Algeria. However, a sharp fall in prices this spring prompted late-season demand, including sales to Egypt. The increased export projections led FranceAgriMer to trim its outlook for soft wheat stocks at the end of the season on June 30. Stocks are now projected at 2.48 million tons, down from 2.62 million last month and 22% below last season's level. For barley, FranceAgriMer again cut the expected end-of-season stocks to 1.04 million tons from 1.16 million last month, after raising its export forecasts by a total of 150,000 tons from last month. French barley shipments have been boosted by a wave of sales to North African and Middle Eastern markets, with traders citing low availability of barley in the rival Black Sea export zone. The office again raised its forecast of maize stocks in 2024/25, to 3.53 million tons from 3.47 million projected last month due to another rise in estimated harvest supplies.
Business Recorder
an hour ago
- Business Recorder
PARTLY FACETIOUS: The trend in this country is not to invest in Pakistan but outside
'Trump dished the French President.' 'Dished? Like what? As in barbecue, curry?' 'Or pizza – Nawaz Sharif does like pizza doesn't he?' 'I am not sure it's the pizza that he likes, I reckon he likes the location - Harrods in London.' 'Location should be more important to Trump – he is a real estate tycoon though recently he has been involved in all sorts of business – cryptocurrency has reaped billions for his family, billions mind you not millions like…like…' 'Foreign direct investment inflows?' 'Shut up.' 'Hear me out – the billions Trump family has raked in due to his easing oversight of the cryptocurrency industry yet there are serious ethical and legal questions…' 'I would advise you to shut up and don't try to put up because there is nothing that you can put up.' 'Well my argument…' 'Shut the hell up. Moving forward the Trump family is also selling some items like gold mobile phones which incidentally are a steal at less than 500 dollars…' 'Why can't our prime and chief ministers engage in business ventures, you know invest their own money in the private sector, provide jobs to people and…and wait…generate growth…' 'Two things first of all take away chief ministers from this plan because other than the Punjab chief minister who belongs to the ruling family the others are second to third tier leaders.' 'OK but…' 'Wait and second the trend in this country is not to invest in Pakistan but outside – and that too mostly in real estate.' 'But…' 'And look at the glass as fully full, because the FDI that is coming into the country is not facing any ethical and legal issues…' 'That is because thankfully all are on the same page and that's the way the cookie must crumble. Poor Trump is facing pressure from everyone – the Israelis, the Arabs who have pledged billions of dollars of investment in the US, his own MAGA base and last but not least his own cabinet…' 'I propose Trump changes the constitution to get a third term, and we have lawyers with the experience and…' 'Oh shut up.' Copyright Business Recorder, 2025
Business Recorder
an hour ago
- Business Recorder
Iron ore extends fall on slowing China demand
SINGAPORE: Iron ore futures fell on Wednesday, and were on track for a fifth straight session of decline, pressured by slowing demand for the steelmaking material in top consumer China and a firmer dollar. The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) lost 0.86% to 693 yuan ($96.42) a metric ton as of 0242 GMT. The benchmark July iron ore on the Singapore Exchange shed 0.68% to $92.15 a ton. Steel production is slowing as the off-season sets in, and demand is likely to weaken further, said broker Galaxy Futures. 'The rainy season has slowed construction activity in southern China. In the north, high temperatures are contributing to a slowdown,' said ANZ analysts. Production among China's blast furnace steel producers slid for the fifth straight week during June 6-12, according to data from consultancy Mysteel, which attributed the fall to regular maintenance stoppages among the mills. 'Beijing's efforts to curb over-capacity in the steel industry looks to be playing out,' added ANZ. China's crude steel output slid 6.9% from a year earlier to 86.55 million tons in May, data from the National Bureau of Statistics (NBS) showed. Total iron ore stockpiles across ports in China climbed about 1.06% week-on-week to 133.4 million tons as of June 13, Steelhome data showed. Also pressuring prices was a stronger US dollar, which held onto gains against major currencies on the day amid safe-haven bids, making greenback-denominated assets less affordable to holders of other currencies. Other steelmaking ingredients on the DCE were mixed, with coking coal down 0.5% and coke up 0.66%. Steel benchmarks on the Shanghai Futures Exchange traded sideways. Rebar fell nearly 0.3%, stainless steel eased 0.04%, while hot-rolled coil traded flat and wire rod added 0.24%.
