SINGAPORE- Chicago soybeans lost more ground on Tuesday, with the market trading close to a four-year low hit in the previous session, after a US government agency forecast record production.
Corn ticked lower, giving up some of Monday’s gains, which were driven by estimates of lower inventories, while wheat slid.
“The outlook for soybean supplies is bearish for the market,” said one trader in Singapore. “And the demand side is also not looking great.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.7 percent to $9.78-3/4 a bushel, having dropped to its lowest levels since September 2020 in the previous session.
Corn gave up 0.1 percent to $4.01-1/4 a bushel and wheat lost 0.7 percent to $5.33 a bushel.
The US Department of Agriculture raised its estimates for corn and soybean production from a month earlier on Monday, adding to expectations of hefty global supplies of both crops.
The agency in its monthly supply-demand report raised the estimate for the 2024/25 soybean crop to a record 4.589 billion bushels, exceeding analysts’ expectations and last month’s forecast.
It forecast a 2024/25 corn crop of 15.147 billion bushels, up from last month and the July estimate. However, the USDA lowered the corn ending stocks estimate.
