Soybeans ease on Argentine export push
By Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, Sept 6 (Reuters) - Chicago soybean futures lost ground on Tuesday, curbed by weakness in crude oil and expectations of an exchange-rate boost to Argentine exports.
Wheat and corn were little changed as Chicago grain futures resumed trading on Tuesday after a three-day holiday weekend in the United States for Labor Day.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.99% at $14.06-1/2 a bushel by 1145 GMT.
CBOT corn inched up 0.8% to $6.66-1/4 a bushel and wheat ticked down 0.03% to $8.10-3/4 a bushel.
"A surge in Argentina producer soybean sales over the coming days could be negative for CBOT soybean futures, but we will have to see how producers react to the 'soybean dollar' in coming days," said Terry Reilly, senior commodity analyst with Futures International in Chicago. Argentina's farmers said on Monday the government's decision to improve the exchange rate for soybeans exported in September is a temporary "patch" that will likely boost sales of the crop during the month, but fails to solve root issues.
Oilseed markets were also curbed by a drop in mineral oil, as economic worries tempered reaction to a planned output cut by OPEC+ producing countries, and a six-week low for palm oil. A firm dollar also capped U.S. commodities.
Traders were turning their attention to upcoming harvesting of U.S. corn and soybeans, after summer field surveys suggested mixed corn yields and strong potential for soy crops. The market will get an update on field conditions from the weekly U.S. Department of Agriculture crop progress report later on Tuesday, before the agency updates its monthly supply and demand forecasts next Monday.
Favourable early projections for Brazil's next soybean and corn crops were also capping U.S. prices. For wheat, recent rain and showers forecast in the coming days could help planting of winter wheat in parched parts of the U.S. Plains and Europe. In Russia, wheat export prices fell last week and demand from importers was rising, according to analysts. Ukrainian grain exports are rising under a sea corridor deal, although the warn-torn country is facing a fall in wheat sowing for next year's crop.
Prices at 1145 GMT Last Change Pct End Ytd Pct Move 2021 Move CBOT wheat 810.75 -0.25 -0.03 770.75 5.19 CBOT corn 666.25 0.50 0.08 593.25 12.31 CBOT soy 1406.50 -14.00 -0.99 1339.25 5.02 Paris wheat 320.75 -2.25 -0.70 276.75 15.90 Paris maize 314.50 -1.75 -0.55 226.00 39.16 Paris rape 603.50 -9.00 -1.47 754.00 -19.96 WTI crude oil 86.41 -0.46 -0.53 75.21 14.89 Euro/dlr 0.99 0.00 -0.03 1.1368 -12.71 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.
(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Rashmi Aich, Sherry Jacob-Phillips and Chizu Nomiyama)
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