GRAINS-Soybeans, corn slip to new lows as supply pressure weighs

Credit: REUTERS/RODOLFO BUHRER

Updates at 1216 GMT, changes dateline

PARIS/CANBERRA, Jan 30 (Reuters) - Chicago soybean futures edged to another two-year low while corn eased to a three-year low as improving harvest expectations in South America and doubts over Chinese demand kept the focus on ample global supplies.

Wheat fell for a third session, curbed by competition from Black Sea origins as well as bearish sentiment across grain markets.

The most active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.1% at $11.93 a bushel by 1216 GMT.

The contract fell to $11.87-3/4 earlier, its weakest since November 2021 and below a previous two-year low struck on Monday.

CBOT corn Cv1 was down 0.7% at $4.37 a bushel, the lowest since December 2020 and below a previous three-year trough hit in mid-January.

"Soybean and corn prices remain under pressure after the supply outlook brightened further recently," Commerzbank said in a note.

The Buenos Aires Grains Exchange last week raised its soybean and corn crop estimates for Argentina.

Showers forecast this week and next in Brazil have eased concerns about drought damage, though traders are monitoring a hot, dry spell in Argentina before an expected return of rain late next week.

Demand for feed grains from China, meanwhile, is expected to weaken as the country's pig herd shrinks.

The country's real estate crisis has also raised economic worries, though investors are anticipating the government will provide stimulus support.

"Demand is also an issue with economic woes persisting in China, the world's number one importer," said Andrew Whitelaw at consultants Episode 3.

"We expect a bearish environment for a while."

Speculators have built their most bearish-ever January view across U.S. grains and oilseeds and funds were net sellers of soybeans, corn and wheat futures on Monday, traders said.

CBOT wheat Wv1 fell 1.4% to $5.85 a bushel.

In wheat, Russian export prices continued to decline last week amid oversupply pressure in the Black Sea.

The European Commission raised its forecast for EU stocks of soft wheat at the end of the 2023/24 season by around 700,000 tons, to 19.1 million tons, after upward revisions to harvest production and imports.

Prices at 1216 GMT

Last

Change

Pct Move

CBOT wheat Wv1

585.00

-8.50

-1.43

CBOT corn Cv1

437.00

-3.25

-0.74

CBOT soy Sv1

1193.00

-1.25

-0.10

Paris wheat BL2c1

212.75

-1.00

-0.47

Paris maize EMAc1

185.00

-0.75

-0.40

Paris rapeseed COMc1

419.00

-5.00

-1.18

WTI crude oil CLc1

76.59

-0.19

-0.25

Euro/dlr EUR=

1.08

0.00

0.06

Most active contracts - Wheat. corn and soy US

cents/bushel. Paris futures in euros per tonne

(Reporting by Gus Trompiz in Paris and Peter Hobson in Canberra; Editing by Rashmi Aich, Savio D'Souza and Tomasz Janowski)

((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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