Traders focused on crop demand after the US Department of Agriculture updated its national production estimates in a monthly report released on Monday.
“While we’ve answered a lot of the questions on the supply side, we now have a ton of questions on the demand side,” said Ted Seifried, chief market strategist at Zaner Ag.
In Argentina, the world’s leading exporter of soybean oil and meal and the third largest exporter of unprocessed oilseeds, Producers increased sales after the government implemented a more favorable exchange rate for crop exports. Until last month, they were withholding more soybeans than usual due to the uncertain economic environment in Argentina.
“Competition from South American supplies continues to put pressure on US soybean exports,” Zhongzhou Futures analysts in China said.
Trading was choppy as Wall Street’s main indices hit two-month lows and investors were torn between tight U.S. grain inventories and uncertain demand.
“We’re trying to juggle the idea of tighter-than-expected balance sheets, especially in soybeans,” Sefried said. “We’re kind of stuck in the middle.”
Traders will watch the pace of the US corn and soybean harvests, which are generally benefiting from hot, dry weather. In the southern Delta region, the showers have not been enough to hinder the harvest, according to the Commodity Weather Group.
Source: Ambito
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