SINGAPORE- Chicago soybean futures lost more ground on Wednesday, with forecast of rains in parts of Brazil’s dry oilseed-producing areas easing concerns over dry weather conditions hurting the newly planted crop.
Corn and wheat futures slid.
“Rains are expected in dry areas of Brazil, which have taken out some of the weather premium from market,” said one Singapore-based trader. “Prices will come down further if Brazilian weather continues to improve.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.2 percent at $13.21-1/4 a bushel. Corn lost 0.2 percent to $4.84-1/4 a bushel and wheat slid 0.1 percent to $6.24-3/4 a bushel.
Heat and dryness have hurt crops in northern and central parts of Brazil, but analysts said some forecasts on Tuesday looked wetter than previous outlook.
Brazil is the world’s biggest soybean exporter, and dryness in recent weeks has raised crop concerns and prompted China to book larger volumes from rival supplier – the United States.
