Soybean prices are facing challenges from the considerable supply coming from Brazil as Chicago futures remained steady on Wednesday, hovering near a one-week low. The market is being influenced by the abundant South American supplies and ongoing uncertainties regarding how a trade war might affect U.S. agricultural exports.
Corn prices showed no movement, whereas wheat witnessed a slight increase. A trader based in Singapore commented on the situation, stating that the supply of soybeans appears to be quite stable, particularly with the Brazilian crop now entering the market.
However, future market trends are expected to be shaped by planting conditions and decisions in the United States. As of 0312 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) was unchanged at $10.11-1/4 per bushel.
Wheat saw an increase of 0.6%, bringing the price up to $5.60-1/4 per bushel, while corn remained steady at $4.70-1/4 per bushel. The pressure on soybean prices is primarily due to the significant South American supplies making their way into the market, with Brazil’s soybean exports projected to hit 15.45 million metric tons in March, an increase of more than 4% compared to the previous forecast.
Corn prices faced downward pressure as the U.S. government refrained from changing its projections for domestic corn inventories in a recent supply-and-demand report. This is despite strong export sales and ongoing trade tensions with Mexico, a key buyer.
The U.S. Department of Agriculture maintained its estimates of 2024-25 corn stocks at 1.54 billion bushels, along with export projections unchanged at 2.45 billion bushels. Traders and farmers are closely monitoring export activities amid tariff disputes that threaten the sales of U.S. agricultural goods.
In recent trading activity, commodity funds were net sellers of CBOT corn, soybean, wheat, and soymeal futures, while also being net buyers of soyoil futures, according to trader reports.