USA: Soybeans near four-year low on Brazil crop outlook and soy oil slide

Published 2024년 12월 19일

Tridge summary

Chicago soybean futures are approaching a four-year low due to expectations of a large crop in Brazil and a drop in soyoil prices caused by a proposed U.S. biofuel policy change. Wheat prices are steady, with a slight decrease in Chicago wheat as traders consider global crop conditions. Corn is consolidating ahead of the U.S. Federal Reserve interest rate announcement. Soybeans are also being affected by concerns over potential shifts in demand from biodiesel due to the proposed biofuel policy. Additionally, the forecast for Russia's wheat production has been reduced due to poor crop conditions, but positive harvests in Argentina and Australia, along with improved crop conditions in the northern hemisphere, are also factors.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Chicago soybean futures extended losses on Wednesday to approach a four-year low, pressured by bumper crop prospects in Brazil and a slide in soyoil prices fuelled by a proposed U.S. biofuel policy change. Chicago wheat was little changed, steadying after a four-day drop as traders assessed global crop conditions including in top wheat exporter Russia. Corn also consolidated as investors awaited a U.S. Federal Reserve interest rate announcement later in the day. MKTS/GLOB The most-active soybean contract Sv1 on the Chicago Board of Trade (CBOT) was down 0.95% at $9.67-1/2 a bushel. It earlier touched its weakest level since late August at $9.67, approaching a four-year low of $9.55 hit in mid-August. “The downward acceleration is justified by a sharp drop in soybean oil prices and especially by satisfactory conditions in Brazil for crop development,” Argus analysts said in a note. In Brazil, the world’s biggest soybean producer and exporter, regular rain in recent weeks has eased ...

Source: Hellenic Shipping News