Soybeans near four-year low on Brazil crop outlook and soyoil slide
Updates at 0959 GMT, changes dateline
PARIS/CANBERRA, Dec 18 (Reuters) -Chicago soybean futures extended losses on Wednesday to approach a four-year low, pressured by bumper crop prospects in Brazil and a slide in soyoil prices fuelled by a proposed U.S. biofuel policy change.
Chicago wheat was little changed, steadying after a four-day drop as traders assessed global crop conditions including in top wheat exporter Russia.
Corn also consolidated as investors awaited a U.S. Federal Reserve interest rate announcement later in the day. MKTS/GLOB
The most-active soybean contract Sv1 on the Chicago Board of Trade (CBOT) was down 0.95% at $9.67-1/2 a bushel.
It earlier touched its weakest level since late August at $9.67, approaching a four-year low of $9.55 hit in mid-August.
"The downward acceleration is justified by a sharp drop in soybean oil prices and especially by satisfactory conditions in Brazil for crop development," Argus analysts said in a note.
In Brazil, the world's biggest soybean producer and exporter, regular rain in recent weeks has eased drought and put the country on course for a record crop.
Consultants AgRural said on Monday that 2024/25 soybean planting was complete and production expected to reach a record 171.5 million metric tons.
Soybeans were further dented by sharp losses for co-product soyoil after news on Tuesday that a U.S. government funding bill includes plan that would allow year-round sales of gasoline with a higher blend of corn-based ethanol.
The news raised concern that it might shift demand from biodiesel, another biofuel that uses vegetable oils like soyoil, adding to uncertainty over government support as Republican Donald Trump returns to the White House next month.
CBOT soyoil BOv1 was down 2.25% at 40.03 cents per pound, after hitting a three-month low, as it added to a similar-sized fall on Tuesday. Other vegetable oil markets also slid. POI/
In cereals, CBOT corn Cv1 was up 0.06% at $4.43-3/4 a bushel as it consolidated below a 5-1/2-month high reached last week following a reduced U.S. government supply forecast.
The prospect of extra ethanol demand in the United States helped underpin the market, though favourable crop conditions in Brazil and tepid demand in China were restraining prices, analysts said.
CBOT wheat Wv1 was down 0.05% at $5.44-3/4 a bushel.
Consultants Sovecon cut their forecast for 2025 wheat production in Russia by 3 million metric tons to 78.7 million tons, citing that crop conditions were the worst in decades.
However, ongoing harvests in Argentina and Australia have exceeded expectations while outside Russia crop conditions in the northern hemisphere have generally improved.
Prices at 0959 GMT | |||
Last | Change | Pct Move | |
CBOT wheat Wv1 | 544.75 | -0.25 | -0.05 |
CBOT corn Cv1 | 443.75 | 0.25 | 0.06 |
CBOT soy Sv1 | 967.50 | -9.25 | -0.95 |
Paris wheat BL2Z4 | 218.75 | 0.00 | 0.00 |
Paris maize EMAc1 | 206.75 | -1.00 | -0.48 |
Paris rapeseed COMc1 | 529.50 | -8.00 | -1.49 |
WTI crude oil CLc1 | 70.65 | 0.57 | 0.81 |
Euro/dlr EUR= | 1.05 | 0.00 | 0.05 |
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton | |||
Reporting by Gus Trompiz in Paris and Peter Hobson in Canberra; Editing by Sherry Jacob-Phillips and Mohammed Safi Shamsi
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