Soybeans drop on South American harvests

Rising projections for South America's harvests knocked US soybean futures to their lowest level in nearly two weeks Wednesday. Soybeans for May delivery, the most actively traded contract, dropped 33 cents, or 2.4 percent, to US$13.49 a bushel at the Chicago Board of Trade.

Grain futures also weakened, as selling flooded agricultural markets. Corn, however, avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns. Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina. Soybean futures have lost eight percent since hitting a 2 1/2-year high last month on worries about tight inventories.

"The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America," Doane Advisory Services told clients in a note. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.