Soy tumbles to 2020 lows as rains seen aiding US crops
Corn nearly flat
30 July 2024
2 minute read
By: Chicago soybean prices plunged on Monday to the lowest since October 2020, as forecasts for rain in the US crop belt alleviated concerns over the potential impact on crop yields from hot and dry weather, reported Reuters.
Corn hovered around steady, while wheat gained strength on export demand, said analysts.
Meanwhile the market awaited numbers from the US Department of Agriculture's weekly crop progress and condition report.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 13-3/4 cents at $10.34-3/4 a bushel at 12:04 P.M CDT (1504 GMT)
CBOT corn rose 1 cent to $4.11 a bushel.
The market had initially anticipated extreme heat and dryness over the US Midwest to reduce corn and soybean crop production but recent weather forecasts indicated that the hot and dry weather would be temporary, analysts said.
"The story in soybeans and to some extent corn is we have great weather across much of the Midwest and great crop conditions," said Nathan Losey, a grain analyst at AgResource Company. "Right now, we're on track for a big crop," he said.
And, said Losey, China has little new crop soybeans booked, while US farmers are still holding on to a large amount of old crop corn and soybeans.
Wheat Wv1rose 7-1/2 cents to $5.31 a bushel on demand after US export inspection data, as well as poor conditions in the EU.
"Wheat is on the upper end on the inspections," said Jim Gerlach president at A/C Trading.
The US Department of Agriculture put export inspections of wheat for the week ending July 25 at 431,233 metric tons.
Ratings of French soft wheat fell again last week to hit another eight-year low, with only half of the crop now in good condition, while harvesting remained well behind average as wet weather throughout the cycle continued to weigh on crops.
