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Forecast of record U.S. corn, soybean crops to weigh on
prices
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Winter wheat futures jump 1%, near highest since mid-Feb
(Adds quote in paragraphs 3-4, updates prices)
By Naveen Thukral
SINGAPORE, May 15 (Reuters) - Chicago soybean futures
lost ground on Monday, while corn prices were little changed,
with both markets weighed down by a U.S. government forecast for
all-time high production.
Winter wheat climbed almost 1%, adding to last session's
strong gains as expectations of crop losses in the
drought-stricken U.S. Plains underpinned prices.
"The USDA monthly supply/demand report on Friday presented
the first look at the 2023/24 season and it was bearish for corn
and soybeans," commodities research firm Hightower said in a
report.
"Big ending stocks are anticipated if the weather is
normal."
The most-active corn contract on the Chicago Board of
Trade (CBOT) added quarter of a cent to $5.86-1/2 a
bushel, as of 0120 GMT and soybeans lost 0.1% to
$13.88-3/4 a bushel.
K.C. hard red winter wheat futures rose 0.9% to
$8.84-3/4 a bushel, after climbing 4.2% on Friday.
The U.S. Department of Agriculture (USDA) in its monthly
supply-demand report said wheat harvest in the Plains would be
the smallest since 1957 as farmers across Kansas, Oklahoma and
Texas were forced to abandon crops due to dry conditions.
Global wheat importers and exporters are keeping a close
watch on talks to extend a Black Sea grain pact that allows
Ukraine to ship grains despite war with Russia.
Parties to the Black Sea grain pact are nearing a deal to
extend it after talks between Ukrainian, Russian, Turkish and
United Nations officials, Turkey's Defence Minister Hulusi Akar
said.
Russia has threatened to quit the agreement on May 18 over
obstacles to its grain and fertilizer exports and the four
parties discussed U.N. proposals to extend the deal on Thursday.
U.S. corn and soybean supplies were expected to rise sharply
in the coming year due to forecasts for a record harvest for
both crops, the USDA said on Friday.
Ending stocks of corn for the 2023/24 marketing year were
pegged at 2.222 billion bushels, up from 1.417 billion in
2022/23. Soybean end stocks were forecast to grow to 335 million
bushels from 215 million with wheat stocks seen falling to 556
million bushels, their lowest since 2008.
However, corn and soybean production forecasts will be
highly dependent on U.S. Midwest weather over the next several
months, which will be a key market concern as farmers finish
planting and crops.
China is significantly increasing the rate of inspections on
imported soybean cargoes, three soybean traders told Reuters on
Friday, lengthening already slow and costly clearing times in
the world's top buyer of beans.
Large speculators trimmed their net short position in CBOT
corn futures in the week to May 9, regulatory data released on
Friday showed.
The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and cut their net long position in
soybeans.
(Reporting by Naveen Thukral)
