Content ID

311300

GRAINS-Soybeans at highest since 2014 on Argentine crop worries

SINGAPORE, March 8 (Reuters) - Chicago soybean futures gained more than 2% on Monday, climbing to their highest in almost seven years, as dry weather in key supplier Argentina buoyed the market.

There was additional support from broad-based gains in world markets.

Corn and wheat futures rose for a second consecutive session.

FUNDAMENTALS

* The Chicago Board of Trade (CBOT) most-active soybean contract hit its highest since June 2014 at $14.60 a bushel. The market was up 2% at $14.58-3/4 a bushel, as of 0156 GMT.

* Corn added 1.9% to $5.56 a bushel, while wheat rose 0.9% to $6.59 a bushel.

* Concerns increased over crops in Argentina, the world's top soymeal exporter, as Commodity Weather Group said a rain deficit was seen "leading to severe yield loss" for 30% of the soy belt in the coming 10 days.

* Weather firm Maxar said below-normal rains are forecast in Argentina over the next 15 days, stressing second-crop soybeans.

* "February and March are perhaps the two most important months for Argentina's corn and soybeans to receive ample rainfall, though last month was unusually dry and this month could follow suit, according to the latest weather forecasts," Karen Braun, a market analyst for Reuters, wrote in a column.

* "Yields in the No. 3 corn and soybean exporter are not projected to be great anyhow, though the poor timing of the latest dry spell could reduce potential even further."

* Ukraine's 2021 spring grain sowing is likely to be postponed until next week because of wet fields and cold weather, deputy economy minister Taras Vysotskiy said on Friday.

* February snowfalls have covered almost all Ukrainian regions and a part of the country remains covered by snow. Last year, southern Ukrainian regions started grain sowing on Feb. 25.

* Some traders also adjusted positions ahead of the release of monthly U.S. Department of Agriculture (USDA) crop forecasts on Tuesday. The agency is expected to further lower its estimates for 2020/21 ending stocks for soybeans and corn, according to a Reuters survey of analysts.

* Large speculators cut their net long position in CBOT corn futures in the week to March 2, regulatory data released on Friday showed.

* The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, switched to a net long position in CBOT wheat and cut their net long position in soybeans.

MARKET NEWS

* Asian shares rallied on Monday while the dollar held near three-month peaks after the U.S. Senate passage of a $1.9 trillion stimulus bill and a surprisingly strong payrolls report augured well for a global economic rebound.

DATA/EVENTS (GMT) 0700 Germany Industrial Output MM Jan 1000 UK The governor of the Bank of England, Andrew Bailey, give a speech on the outlook for the economy to the Resolution Foundation think tank (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

© Copyright Thomson Reuters 2021. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about
Loading...

Tip of the Day

Batteries are charged continually

Implement solar charger It was frustrating to have to charge or boost the batteries so often on my seed tender, self-propelled belt conveyor, and other pieces of... read more

Talk in Marketing