GRAINS-Soybeans fall to new 3-year low, corn off 2-week high

Credit: REUTERS/DIEGO VARA

Updates at end of overnight session, changes dateline

PARIS/CANBERRA, Feb 29 (Reuters) - Chicago soybean futures fell on Thursday to a new three-year low, pressured by an advancing harvest in top producer Brazil and tepid U.S. exports.

Corn edged down after earlier reaching a two-week high that had lifted it away from last week's three-year trough.

Wheat also eased.

Short-covering by speculative investors has helped grain markets bounce off lows in the past week, but plentiful supply in the Americas and the Black Sea region has curbed prices.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 ended the overnight trading session down 1.1% at $11.32-1/4 a bushel.

It earlier reached its weakest since November 2020 at $11.30-1/4, below a previous three-year low struck on Monday.

"Supplies coming out of South America are pressuring the market," said Andrew Whitelaw at agricultural consultants Episode 3. "We expect a continued bearish environment."

Industry association Abiove cut its estimate for Brazil's 2024 soybean output for the second time this month to 153.8 million metric tons due to adverse weather.

But Brazilian production would still be close to last year's record crop of around 159 million tons, and Argentina, which begins harvesting in April, expects a bumper crop.

Weekly U.S. export sales data on Thursday showed soybean sales near the low end of market expectations, suggesting strong competition from Brazilian supplies was continuing.

CBOT corn Cv1 was down 0.7% at $4.25-1/2 a bushel, after earlier climbing to its highest since Feb. 13. CBOT wheat Wv1 eased 0.4% to $5.72-3/4.

Contributing to abundant supply, Ukraine's grain exports so far in February have exceeded last year's level by almost 12%, reaching 5.3 million metric tons, agriculture ministry data showed.

Investors were also digesting U.S. core personal consumption expenditures (PCE) price data, which was in line with analyst estimates, as a clue to the timing of interest rate cuts. MKTS/GLOB

Prices at 1347 GMT

Last

Change

Pct Move

CBOT wheat Wv1

572.75

-2.00

-0.35

CBOT corn Cv1

425.50

-3.00

-0.70

CBOT soy Sv1

1132.25

-13.00

-1.14

Paris wheat BL2c1

192.50

-2.00

-1.03

Paris maize EMAc1

176.00

1.00

0.57

Paris rapeseed COMc1

410.25

-4.75

-1.14

WTI crude oil CLc1

78.78

0.24

0.31

Euro/dlr EUR=

1.08

0.00

0.00

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 Janane Venkatraman and Andrea Ricci

)

((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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