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U S Soybeans Slide as Focus Shifts To Brazil Exports

Date 19-May-2017
Subject U S Soybeans Slide as Focus Shifts To Brazil Exports

Soybeans down 2 pct, weaker real seen fuelling Brazil exports Lower palm oil, crude oil prices also weigh on soy complex Corn, wheat lower; Trump uproar unsettles financial markets (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, May 18 (Reuters) - Chicago soybeans fell sharply on Thursday, accelerating a pullback from a one-week high a day earlier, as an easing in the Brazilian real shifted attention back towards export competition from a huge South American harvest.

Corn and wheat were also lower, with a bearish context of plentiful supplies reinforced by investor worries over a political crisis embroiling U.S. President Donald Trump. 

The Chicago Board Of Trade most-active soybean contract was down 2.0 percent at $9.56-1/4 a bushel by 1121 GMT. The contract had already closed slightly lower on Wednesday after retreating from a one-week high as the real turned lower against the dollar. 

"The decline of the real is weighing on the soy complex, getting Brazilian origins more competitive," consultancy Agritel said in a note. 

A rally in the real earlier this week and new large export sales reported by the U.S. government supported the idea that U.S. soybeans may enjoy a longer export window than thought.

But the easing in the real and market consensus that Brazil has harvested a record large soybean crop were shifting attention back to supply pressures. 

"There is no reason for soybeans to rally. We also have risk-off trade because of the U.S. political crisis," an agricultural commodities analyst said. 

World stocks extended their steepest fall in over six months on Thursday amid uncertainty over president Trump's political future, while the dollar hovered near a six-month low against a basket of currencies. 

A drop in crude oil prices and a fall in Malaysian palm oil futures also curbed soybean prices. 

Soybean is processed to make vegetable oil, which is partly used to manufacture biodiesel fuel. 

CBOT corn lost 1.6 percent to $3.65-1/2 a bushel, having gained 1 percent in the previous session. 

Wheat gave up 0.9 percent to $4.23-1/4 a bushel, having closed up 0.6 percent the day before. 

Wheat had found some support on Wednesday from forecast rain that could hamper the start of the U.S. harvest along with a sale of U.S. wheat to Egypt. 

Egypt's main state wheat buyer purchased two cargoes of U.S. hard red winter wheat in an international tender along with cargoes from Romania, Ukraine and Russia. 

Grain markets will get a further indication of export demand in weekly U.S. export sales data at 1230 GMT. 

Prices at 1121 GMT Last Change Pct End Ytd Pct Move 2016 Move CBOT wheat 423.25 -3.75 -0.88 408.00 3.74 CBOT corn 365.50 -6.00 -1.62 352.00 3.84 CBOT soy 956.25 -19.50 -2.00 1004.00 -4.76 Paris MAT wheat Sep 165.75 -1.00 -0.60 168.00 -1.34 Paris maize Jun 169.25 -0.25 -0.15 166.00 1.96 Paris rape Aug 362.50 -3.50 -0.96 408.50 -11.26 WTI crude oil 48.31 -0.76 -1.55 53.72 -10.07 Euro/dlr 1.11 0.00 -0.22 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.


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