Soybeans fall to 2-week low on strong South American crop prospects
Updates prices, adds quotes, changes byline, previous dateline PARIS/BEIJING
By Julie Ingwersen
CHICAGO, Nov 20 (Reuters) - U.S. soybean futures hit a two-week low on Wednesday and soyoil futures fell about 3% on expectations for plentiful South American soy harvests this year along with uncertainty about demand for soy-based biodiesel fuel, analysts said.
But wheat and corn futures firmed on fears about escalation in the war between Ukraine and Russia.
As of 1:12 p.m. CST (1912 GMT), Chicago Board of Trade January soybean futures SF25 were down 7-3/4 cents, or 0.8%, at $9.90-3/4 per bushel after falling to $9.85-1/4, the contract's lowest since Nov. 6. CBOT December soyoil BOZ24 was down 1.50 cents, or 3.4%, at 43.34 cents per pound.
CBOT March wheat WH25 was up 4 cents, or 0.7%, at $5.71-3/4 a bushel and December corn CZ24 was up 3 cents, or 0.7%, at $4.30-1/4 a bushel.
Front-month soybean futures dropped back below $10 a bushel this week as traders monitored crop weather in Brazil, the world's biggest soy producer and exporter. Planting of the 2024/25 soybean crop is winding down and beneficial rainfall has bolstered production prospects.
"I don't see any threatening weather on the horizon right now," said Tom Fritz, a partner with EFG Group in Chicago.
Brazil is expected to harvest a record 167.7 million tons of soybeans in the 2024/25 season, oilseed lobby Abiove said on Tuesday.
CBOT soyoil futures were pressured by worries about demand for U.S. biodiesel and declines in Malaysian palm oil FCPOc3 futures. Malaysia raised its Decemberexport tax for crude palm oil to 10%, Fritz noted. POI/
Meanwhile, escalating tensions in the Black Sea grain export region helped lift wheat and corn futures from early weakness. Ukraine fired a volley of British Storm Shadow cruise missiles into Russia on Wednesday, the latest new Western weapon it has been permitted to use on Russian targets, a day after it fired U.S. missiles.
The news revived concern about crucial Black Sea supply, but as withprevious war developments, market reaction was tempered by the absence of immediate disruption to grain trade.
Reporting by Julie Ingwersen in Chicago; Additional reporting by Gus Trompiz in Paris and Mei Mei Chu in Beijing; Editing by Richard Chang
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