Chicago soybeans slid for a third consecutive session on Friday with poor U.S. weekly export data adding pressure on prices but the market is poised for a fifth week of gains, underpinned by forecasts of tighter supplies.
Corn and wheat are on track for weekly gains even though prices are expected to remain anchored by abundant global grain supplies.
The Chicago Board of Trade most-active soybean contract is set for a 2.9 percent gain this week, corn has risen 2.5 percent and wheat has gained 0.7 percent. On Friday, soybeans fell 0.6 percent, corn lost 0.4 percent and wheat dropped 0.2 percent.
There was additional pressure on agricultural commodities stemming from a broad decline in Chinese futures.
“U.S. soybean exports were down and Chinese commodity market are taking a hit today which is adding pressure on CBOT,” said Kaname Gokon at brokerage Okato Shoji in Tokyo.
“The market’s upside momentum has reduced because short-covering by funds and commercials is over.”
China’s Dalian soybeans slid almost 3 percent, soyoil lost 4 percent and soymeal gave up about 1 percent.
The U.S. Department of Agriculture’s weekly export sales report put sales of U.S. old-crop soybeans in the latest week at 212,500 tonnes and new-crop sales at just 6,900 tonnes, below trade expectations.
Traders speculate that the USDA’s June 30 acreage report could show a shift of about 1 million acres from corn into soybeans compared to the government’s March 31 planting intentions report.
The U.S. corn crop was 64 percent planted as of May 8, but rainy weather may have slowed progress since then. Soybeans can be planted later than corn, so delays tend to favour soybeans.
CBOT corn on Thursday drew support from weekly U.S. export sales topping 1 million tonnes, and news that private exporters sold 210,000 tonnes of U.S. corn to Saudi Arabia in the last day.
Wheat fundamentals remain bearish, with the USDA forecasting that U.S. inventories will rise above 1 billion bushels by June 1, 2017, the most in 29 years.
Commodity funds were net buyers of CBOT corn and wheat futures contracts on Thursday but net sellers in soybeans.
Trader estimates of net fund buying in corn ranged from 13,000 to 17,000 contracts. They were net sellers of an estimated 7,000 to 10,000 soybean contracts and net buyers of 3,000 to 5,000 wheat contracts.
