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U.S. soybean futures fall to 5-month low on ample supplies

Published 03/18/2015, 07:31 AM
© Reuters.  U.S. soybeans trade at 5-month low on ample global supplies
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Investing.com - U.S. soybean futures fell to a five-month low on Wednesday, as optimism over the outlook for supplies in Brazil and Argentina drove down prices.

Brazil and Argentina are major soybean exporters and compete with the U.S. for business on the global market. Large South American crop prospects could weigh on demand for U.S. supplies.

On the Chicago Mercantile Exchange, US soybeans for May delivery touched a daily low of $9.5340, a level not seen since October 21, before trading at $9.5963 during U.S. morning hours, up 4.43 cents, or 0.46%.

A day earlier, the May soybean contract tumbled 14.6 cents, or 1.52%, to close at $9.5440 as concerns over ample global supplies combined with indications over a slowdown in demand for U.S. soybeans weighed.

Meanwhile, US corn for May delivery tacked on 1.93 cents, or 0.52%, to trade at $3.7313 a bushel. On Tuesday, US corn for May delivery hit $3.7000, the lowest level since February 2, before settling at $3.7100, down 8.0 cents, or 2.11%.

Elsewhere on the Chicago Board of Trade, US wheat for May delivery inched up 1.98 cents, or 0.39%, to trade at $5.0538 a bushel, as concerns over the health of the winter-wheat crop supported prices.

According to the U.S. Department of Agriculture, Kansas winter wheat was rated 41% good to excellent, down from 46% in the previous week, while Oklahoma winter wheat was rated 40% good to excellent, compared to 42% in the previous week.

The May wheat contract rallied to $5.1800 on Tuesday, the most since March 2, before turning lower to end at $5.0340, down 10.4 cents, or 2.04%.

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

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