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U.S. soybean futures decline ahead of USDA monthly report

Published 12/09/2014, 06:24 AM
U.S. soybeans edge lower ahead of USDA monthly report
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Investing.com - U.S. soybean futures fell for the first time in five sessions on Tuesday, as investors readjusted positions ahead of the U.S. Department of Agriculture’s closely-watched monthly crop supply and demand report due later in the week.

The USDA will release its monthly crop supply and demand report on Wednesday, December 10.

Market analysts expect the agency to lower its forecast of 2014-15 soybeans ending stocks, while raising its estimates of corn and wheat ending stocks.

Soybean inventories are expected to fall 5% from a month earlier to 427 million bushels, while corn ending stocks are forecast to rise to 2.027 billion bushels from 2.008 billion in November.

On the Chicago Mercantile Exchange, US soybeans for January delivery shed 1.62 cents, or 0.16%, to trade at $10.4138 a bushel during U.S. morning hours.

Futures hit $10.5040 a bushel on Monday, the most since November 28, before settling at $10.4360, up 7.6 cents, or 0.75%.

Prices of the oilseed have been well-supported in recent sessions as surging demand for soybean products, such as soymeal, boosted prices.

Meanwhile, US corn for March delivery traded at $3.8813 a bushel, down 1.88 cents, or 0.48%. A day earlier, corn futures shed 4.6 cents, or 1.2%, to close at $3.9020 a bushel.

Elsewhere on the Chicago Board of Trade, US wheat for March delivery declined 5.15 cents, or 0.86%, to trade at $5.9225 a bushel.

Wheat prices advanced 4.0 cents, or 0.67%, on Monday to end at $5.9800 amid ongoing speculation Russia will limit its exports of the grain.

Russia, the world's third-largest wheat exporter, has shipped approximately 14 million tons of wheat so far in the 2014-15 marketing season, which started on July 1.

Lower wheat exports from Russia could boost demand for U.S. supplies, which is the world’s biggest exporter of the grain.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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