Chicago Close: Soybeans Continue to Decline on Wetter Forecast

Soybean futures continued to decline in the wake of a more crop-friendly forecast for South American production regions.

Parched areas of southern Brazil and northern Argentina are expected to get much-needed rainfall beginning this weekend, along with much more moderate temperatures. Soybeans also tumbled a day earlier due to the same forecast. On Thursday, the International Grains Council (IGC) dropped its 2021-22 global soybean forecast by 12 million tonnes from its previous report in November to 368 million tonnes, now up just 1 million from the previous year. March beans dropped 7 ½ cents to $13.69 ¾ and November lost 11 ½ cents to $12.93.

The wetter, cooler forecast weighed in corn a day earlier, but the market managed to rebound today. However, the International Grains Council reduced its 2021-22 global corn output forecast by 5 million tonnes to 1.207 billion.

Wheat futures fell, as the IGC expects wheat production to reach 781 million tonnes for 2021-22, up 4 million from the previous estimate. March Chicago wheat dropped 5 ¼ cents to $7.41 ½, March Kansas City lost 14 ¾ cents to $7.45 and March Minneapolis dropped 17 ¼ cents to $8.78 ¼.

Source: DePutter Publishing Ltd.

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