January soybean futures on the Chicago Board of Trade fell 0.8% to $363.95 after falling to the lowest price for the contract since Nov. 6.
The US soybean futures fell to a two-week low on Wednesday and soybean oil prices fell around 3% due to the expectations of abundant oilseed crops in South America this year along with uncertainty over demand for biodiesel fuel, analysts said.
However, the futures of Wheat and corn rose due to fear of an escalation of the war between Ukraine and Russia.
Soybean futures for January on the Chicago Board of Trade they fell 0.8%, to $363.95, after falling to the lowest price for the contract since November 6. Soybean oil for December lost 3.4%.
CBOT wheat for March rose 0.7% to $203.01 and the corn for December advanced 0.7%, to $169.39 per ton.
Soybean futures expiring next month fell again, while Traders were closely monitoring the weather in Brazil, the world’s largest soybean producer and exporter. Planting of the 2024/25 soybean crop is nearing completion and beneficial rains have bolstered prospects.
“I don’t see any threatening weather situations on the horizon at this time,” said Tom Fritz, partner at EFG Group in Chicago. Brazil is expected to reap a record of 167.7 million tons of soybeans in the 2024/25 season, oilseeds association Abiove said on Tuesday.
CBOT soybean oil futures came under pressure on concerns over US biodiesel demand and declines in Malaysian palm oil.
Malaysia increased its crude palm oil export tax from December to 10%, Fritz noted.
Meanwhile, The escalation of war in the grain-exporting Black Sea region helped wheat and corn futures overcome initial weakness. Ukraine fired a barrage of British Storm Shadow cruise missiles at Russia on Wednesday, a day after it launched other American ones.
The news revived concerns about Black Sea supplies, but, as in previous war events, the market reaction was tempered by the absence of an immediate halt to the grain trade.
Source: Ambito
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