MEXICO CITY – US soybean futures closed the week down, extending losses as cheap Brazilian beans were being snatched up by the United States, the second-largest soy producing country in the world.
A drop in prices due to abundant local supplies and cooling demand have made Brazil an attractive origin for soybeans, with at least two vessels carrying a combined 79,150 tons of Brazilian product heading to the US in the next few days, according to shipping data.
“Soybeans are also trading headlines of Brazilian soybeans moving north to the US Southeast,” Arlan Suderman, StoneX chief commodities economist, said in a note to clients.
“That generally has more of a psychological impact on the market than it does fundamental, but perception is reality in the market.”
Corn futures ended lower on long liquidation and a positive outlook for US planting weather, analysts said.
Wheat also finished weaker as markets watched for developments in talks over Ukrainian exports and monitored forecasts of rain relief in drought-hit parts of the US Plains.
The most-active July soybean contract on the Chicago Board of Trade settled 19-1/2 cents lower at $14.49 per bushel.
CBOT July corn settled 10-3/4 cents lower at $6.15-1/4 per bushel, while wheat closed down 7 cents at $6.73 per bushel. – Reuters
