Soybeans drop to over nine-month low on higher US stocks

Soybeans drop to over nine-month low on higher US stocks
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SINGAPORE (Oct 4): Chicago soybean futures slid for a third consecutive session on Monday to their lowest in more than nine months as higher U.S. stocks weighed on the market.

Wheat fell for the first time in four sessions, while corn lost ground.

Fundamentals

The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 0.4% to $12.41-1/2 a bushel after dropping earlier in the session to $12.40 a bushel, the lowest since late December.

Wheat gave up 0.3% to $7.52-3/4 a bushel and corn slid 0.5% to $5.39 a bushel.

Soybean futures fell on pressure from larger-than-expected stocks reported on Thursday by the U.S. Department of Agriculture (USDA). There was additional pressure stemming from the ongoing U.S. harvest.

The USDA reported Sept. 1 soybean stocks at 256 million bushels, above the entire range of trade estimates in the Reuters pre-report poll.

After Friday's CBOT close, the USDA said U.S. processors crushed 168.2 million bushels of soybeans in August, below an average of trade estimates for 169.0 million.

The agency on Thursday reported U.S. Sept. 1 wheat stocks at a 14-year low and also cut its estimate of the 2021 U.S. wheat harvest more than most analysts had expected.

Large speculators raised their net-long position in CBOT corn futures in the week to Sept. 28, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net-short position in CBOT wheat and raised their net-long position in soybeans.

Market news

Global shares bounced in volatile trading on Friday with debate over the timing of future interest rate rises on both sides of the Atlantic intensified by euro zone inflation jumping to a 13-year high.