Grains: Chicago soybean futures slide as USDA forecasts massive U.S. harvest
12/08/2022 18:46
* U.S. soybean harvest expected to top previous expectations
* Corn crop forecast to be smaller than expected due to weather
* News of wheat shipment from Ukraine also curbs prices
(New throughout, new headline, new bullets, updates prices, market activity and
comments; new byline, changes dateline, pvs PARIS/SINGAPORE)
By P.J. Huffstutter
CHICAGO, Aug 12 (Reuters) - Chicago soybean futures fell on Friday after a
U.S. government crop report said U.S. soy farmers would glean a record harvest
even larger than previously forecast, traders said.
While dry weather has hit soybean fields hard in some farms west of the
Mississippi River, yields in top-producing states like Illinois, Indiana and
Ohio would make up for any shortfalls, the U.S. Agriculture Department's monthly
World Agricultural Supply and Demand Estimates report said. urn:newsml:reuters.com:*:nL1N2ZO1LR
Meanwhile, U.S. corn production is forecast to be smaller than previously
thought, as adverse weather during critical periods of development limited
harvest potential, particularly in the South, according to the report.
"It was more of a bearish surprise for soy, than a bullish one for corn,"
said Craig Turner, senior broker at Daniels Trading. "Traders were looking for
reductions on both."
Prior to the report, Chicago Board of Trade soybean futures 0#S: had been
trading higher as investors priced in expectations for a reduction to the crop
outlook.
The Chicago Board of Trade's most-active soybean contract Sv1 was down
0.14% at $14.46-1/2 a bushel by 1722 GMT, after falling to $14.15-1/4 earlier in
the session.
CBOT corn Cv1 ticked up 1.39% to $6.36-1/2 a bushel, though it touched its
highest since July 11 earlier in the trading day. And CBOT wheat Wv1 was down
0.71% at $8.05 a bushel.
USDA on Friday raised its forecast of Ukraine's corn production by 5 million
tonnes, due to timely rains, and increased its forecast of Ukrainian corn
exports by 3 million tonnes.
Two more ships left Ukraine's Black Sea ports on Friday, including one
carrying the first Ukrainian wheat to be exported under a U.N.-brokered deal,
Turkey's defence ministry said. urn:newsml:reuters.com:*:nL1N2ZO07L
(Additional reporting by Marcelo Teixeira in New York, Gus Trompiz in Paris and
Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips, Shailesh Kuber
and Alexander Smith)
((pj.huffstutter@thomsonreuters.com; 313-484-5275 (w); On Twitter
@pjhuffstutter; Reuters Messaging:
pj.huffstutter.reuters.com@thomsonreuters.net))