THE Soy of Chicago fell this Friday after the US Department of Agriculture (USDA) increased its estimate of global ending stocks for the oilseed, although strong exports North American and climate concerns in South America supported the market.
Corn was traded on both sides despite a rise in US inventories. USAwhile the wheat fell.
The most active soybean contract on the Chicago Board of Trade (CBOT) fell 2.5 cents to $14.8375 a bushel, but ended the week up 3.15%, the highest since the week ended Nov. 4.
O wheat it lost 12 cents to close at $7.3425 a bushel, down 3.52% this week, its fifth straight week of declines.
O corn down 1.50 cents to $6.44 a bushel, up 0.348% for the week.
Soybeans declined despite support from rising export demand and drought conditions in Argentinathe biggest producer, although the recent rains may help in the beginning of the South American harvest.
Argentina’s exports could be hurt by the country’s producers’ reluctance to sell the old crop until they see the condition of the next crop, said Mike Zuzolo, president of Global Commodity Analytics.
“Argentine farmers are holding off selling so aggressively,” he said. “They are holding the old crop until they know the new crop is ready.”
Gains in soybeans are further limited by sluggishness at the Chicago grain complex.
USDA’s monthly supply and demand report was largely in line with market expectations, so it did little to move quotes.
“There is nothing in this report that should come as a surprise to anyone. Fifteen minutes after this report was published, the market was already looking forward to what the January report would say,” said Karl Setzer, commodity risk analyst at Agrivisor.
World soybean ending stocks in 2022/2023 increased by 540,000 tonnes to 102.71 million tonnes, while global wheat supplies fell by 490,000 tonnes to 67.33 million tonnes, the USDA said.
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