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Mint
6 days ago
- Business
- Mint
Wheat heads for weekly loss on ample supply
(Adds analyst comment, updates prices) CANBERRA, July 25 (Reuters) - Chicago wheat futures edged lower on Friday and were set to end the week down 1.1% as plentiful global supply from ongoing northern hemisphere harvests outweighed strong U.S. exports. Corn futures were unchanged after U.S. export sales triggered a round of short-covering in the previous session but headed for a 1.7% weekly fall amid expectations of a large U.S. harvest. Soybeans slipped 1.3% for the week as U.S. weekly export sales came in at the lower end of trade estimates. The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.1% at $5.40-3/4 a bushel at 0700 GMT, with CBOT corn flat at $4.20-3/4 a bushel and soybeans 0.1% lower at $10.23 a bushel. Net U.S. wheat export sales for the week ended July 17 came in at 712,000 metric tons, at the high end of a range of trade estimates. U.S. wheat is now cheaper than wheat from Europe or top exporter Russia, where a large harvest is beginning to flow into the market. CBOT wheat slipped to a five-year low of $5.06-1/4 in May. Scouts on an annual North Dakota crop tour projected hard red spring wheat yields in the top-producing state will average 49.0 bushels per acre, down from a record 54.5 bpa last year. Those yield numbers remain above the five-year average, said Rabobank analyst Vitor Pistoia. "There'll still be a solid crop coming from that region," he said. Given that the northern hemisphere is deep into harvest season, "it's very unlikely that something will change with the supply outlook," Pistoia said, adding that plentiful corn supply and low corn prices are also weighing on wheat. "No one's expecting upside." In corn, the USDA on Thursday reported sales of 135,000 tons to South Korea and 284,196 tons to unknown destinations. Soybeans faced some spillover pressure from weakness in the CBOT soymeal market on Thursday after news that Chinese buyers bought more meal from Argentina, though prices regained some ground on Friday. (Reporting by Peter Hobson; Editing by Janane Venkatraman)
Zawya
17-07-2025
- Business
- Zawya
Soybeans edge lower as plentiful supply stifles gains
CANBERRA - Chicago soybean futures fell on Thursday as expectations of ample supply reasserted themselves after hopes for increased demand for U.S. exports helped drive prices up nearly 2% in the previous session. 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.
Business Recorder
17-07-2025
- Business
- Business Recorder
Soybeans edge lower as plentiful supply stifles gains
CANBERRA: Chicago soybean futures fell on Thursday as expectations of ample supply reasserted themselves after hopes for increased demand for US exports helped drive prices up nearly 2% in the previous session. 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 US 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 US farmers who face competition from rising production in Brazil. Wednesday's soybean rally was aided by a US Department of Agriculture (USDA) notification that exporters had sold 120,000 metric tons of US 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, US President Donald Trump said Indonesia, a top-five US 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.
Business Recorder
27-05-2025
- Business
- Business Recorder
Weak Chinese demand leaves Australia with too much wheat
CANBERRA/SINGAPORE: Australian wheat inventories will likely be much higher than last year at the end of the season, pressuring prices, because of a drop in Chinese imports and competition from ample supplies out of rival exporter Russia, analysts and traders said. A fire sale of stored grain may be necessary to clear space before the new wheat harvest in the last quarter of the year, which would weigh on benchmark Chicago futures already trading near their lowest since 2020 because of abundant global supply. Australia sent just 546,000 metric tons of wheat to China during the October to March period, the first six months of its marketing season, down from 2.9 million tons in the first six months of the 2023/24 season and 4.4 million tons in the same period in 2022/23, Australian customs data show. Shipments from Russia, the world's largest wheat exporter, have also remained strong despite the second quarter typically being its pre-harvest lean export season. The next Northern Hemisphere wheat harvest, including Russia's, will ramp up in coming weeks, pouring cheap grain onto the market and limiting Australia's export prospects, said Vitor Pistoia, an analyst at Rabobank in Sydney. 'If the current pace of Australian exports continues, we're going to have 5-6 million tons of carryover from last season's crop,' he said. 'We are building up a massive problem. It's not like the global market is short of supply,' he said, adding that it may lead to mass selling of grain that could push prices towards A$300 ($194) a ton from between A$325 to A$350 now. Argentina wheat harvest could tick up on favourable weather, soil conditions Total carryover including grain from past seasons could be as high as 8 million tons, said a source at an international grain trader based in Australia. 'If the new season crops look good, it can become a storage capacity issue. It forces people to sell cheaper into the export market to clear space,' the source said. Australia's end-of-season wheat stocks have averaged 3.3 million tons in the last five years, according to data from the US Department of Agriculture. 'Four million tons is comfortable,' the source said. 'More than 6 is getting difficult.' Analysts expect Australia to produce 28 million-34 million tons of wheat this year. That would be down from last year's 34.1 million tons but well above the ten-year average of 27.6 million tons, according to government data. Chinese buyers booked four or five 55,000-ton shipments of Australian wheat around the start of May, but these are the only new Chinese purchases this calendar year and have not been followed up with more. China, which was experiencing hot and dry in key growing regions, is likely to see rainfall in those areas through next Tuesday which could further reduce demand for imported wheat. Russia, meanwhile, has continued to ship grain at competitive prices even during its off season, said a grain trader in Singapore. 'We were hoping more Australian wheat cargoes would reach destinations in the Middle East and Africa,' they said. 'There were expectations that Russia would have less to export.'
Business Times
27-05-2025
- Business
- Business Times
Weak Chinese demand leaves Australia with too much wheat
[CANBERRA] Australian wheat inventories will likely be much higher than last year at the end of the season, pressuring prices, because of a drop in Chinese imports and competition from ample supplies out of rival exporter Russia, analysts and traders said. A fire sale of stored grain may be necessary to clear space before the new wheat harvest in the last quarter of the year, which would weigh on benchmark Chicago futures already trading near their lowest since 2020 because of abundant global supply. Australia sent just 546,000 metric tons of wheat to China during the October to March period, the first six months of its marketing season, down from 2.9 million tons in the first six months of the 2023/24 season and 4.4 million tons in the same period in 2022/23, Australian customs data show. Shipments from Russia, the world's largest wheat exporter, have also remained strong despite the second quarter typically being its pre-harvest lean export season. The next Northern Hemisphere wheat harvest, including Russia's, will ramp up in coming weeks, pouring cheap grain onto the market and limiting Australia's export prospects, said Vitor Pistoia, an analyst at Rabobank in Sydney. 'If the current pace of Australian exports continues, we're going to have 5-6 million tons of carryover from last season's crop,' he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We are building up a massive problem. It's not like the global market is short of supply,' he said, adding that it may lead to mass selling of grain that could push prices towards A$300 (S$250) a ton from between A$325 to A$350 now. Total carryover including grain from past seasons could be as high as 8 million tons, said a source at an international grain trader based in Australia. 'If the new season crops look good, it can become a storage capacity issue. It forces people to sell cheaper into the export market to clear space,' the source said. Australia's end-of-season wheat stocks have averaged 3.3 million tons in the last five years, according to data from the U.S. Department of Agriculture. 'Four million tons is comfortable,' the source said. 'More than 6 is getting difficult.' Analysts expect Australia to produce 28 million to 34 million tons of wheat this year. That would be down from last year's 34.1 million tons but well above the ten-year average of 27.6 million tons, according to government data. Chinese buyers booked four or five 55,000-ton shipments of Australian wheat around the start of May, but these are the only new Chinese purchases this calendar year and have not been followed up with more. China, which was experiencing hot and dry in key growing regions, is likely to see rainfall in those areas through next Tuesday which could further reduce demand for imported wheat. Russia, meanwhile, has continued to ship grain at competitive prices even during its off season, said a grain trader in Singapore. 'We were hoping more Australian wheat cargoes would reach destinations in the Middle East and Africa,' they said. 'There were expectations that Russia would have less to export.' REUTERS
