Soybeans edge lower as plentiful supply stifles gains
Corn futures edged higher, supported by short-covering and technical buying, and wheat held its ground despite pressure from ongoing harvests in the Northern Hemisphere.
All three markets — corn, wheat, and soybeans — are well supplied, holding prices near multi-month or multi-year lows.
Brazilian farmers will likely favour soybeans over corn when they plant later this year because of the price differential between the two crops and the higher fertiliser cost of growing corn, said Vitor Pistoia, a Rabobank analyst in Sydney.
Coming on the heels of large harvests this year in Brazil and the United States, that should dispel any thought of tighter supply, he said, adding: "There is no upside for soybeans."
However, increased crushing of soybeans in the U.S. for oil to make biofuel would also limit any downside for prices, he added.
The most active soybean contract on the Chicago Board of Trade (CBOT) was down 0.3% at $10.17 a bushel by 0338 GMT.
Adjusted for inflation, month-to-date price averages for CBOT soybeans and corn are at their lowest July levels since 2006, underscoring the difficulties of U.S. farmers who face competition from rising production in Brazil.
Wednesday's soybean rally was aided by a U.S. Department of Agriculture (USDA) notification that exporters had sold 120,000 metric tons of U.S. soybeans to undisclosed destinations.
This triggered speculation that the purchases were made by China, whose soy imports from the U.S have been slow this year.
Meanwhile, U.S. President Donald Trump said Indonesia, a top-five U.S. soybean importer, had committed to purchasing $4.5 billion in American agricultural products in a trade deal.
In other crops, CBOT corn was up 0.1% at $4.24-1/2 a bushel after rising from a contract low of $4.07-1/2 on Monday.
Wheat was unchanged at $5.41-1/4 a bushel.
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