USA: Soybeans stay subdued as focus shifts to Fed decision

Published 2024년 12월 18일

Tridge summary

Chicago soybean futures experienced a decline due to combined factors of lower U.S. crushing data, favorable Brazilian crop conditions, and investor focus on the upcoming U.S. Federal Reserve interest rate decision. The most-active soybean contract on the Chicago Board of Trade was marginally lower at $9.80-3/4 a bushel. This downturn in soybeans was accompanied by steady corn futures, driven by the anticipation of tighter U.S. supply, and a slight decline in wheat futures. The strength of the dollar also played a role in making grains more expensive on the international market. In contrast, Euronext wheat futures reached a seven-week high following a significant purchase by Saudi Arabia, indicating potential issues in the supply from Russia.

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

Original content

Chicago soybean futures edged down on Tuesday as lower-than-expected U.S. crushing data and favourable crop conditions in Brazil hung over the market while investors turned their attention to a U.S. interest rate decision. Corn futures were steady, underpinned by expectations of tightening U.S. supply, while wheat eased. A firm dollar .DXY weighed on grains, making them more expensive overseas. The dollar was supported by the view among some traders that the U.S. Federal Reserve will on Wednesday suggest it will lower borrowing rates only gradually next year. “The macroeconomic environment has become a more bearish headwind for agricultural money flows ahead of tomorrow’s important (Fed) policy decision,” Peak Trading Research said in a note. The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.1% at $9.80-3/4 a bushel by 1028 GMT, adding to losses from Monday. The U.S. soybean crush declined in November from an all-time high in October and fell ...

Source: Hellenic Shipping News