Mon Oct 15, 2012
* Soy falls below $15 a bushel, lowest since June 29
* Corn drops for 5 out of 7 sessions, wheat down
* Declining U.S. exports, global growth concerns weigh
By Naveen Thukral
SINGAPORE, Oct 15 (Reuters) - Chicago soy slid 1.6 percent on Monday, falling below $15 a bushel for the first time since late June , while corn lost more ground, with concerns over global growth fuelling the bearish sentiment arising from slowing U.S. grain exports.
Corn has dropped for five out of seven sessions and soybeans have fallen for the past four weeks as demand slows after prices surged to record highs this summer following the worst U.S. drought in 56 years.
"It appears that the seasonality continues to be a significant headwind, particularly in the oilseed market," said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia.
"We are seeing the U.S. dollar strengthening and crude oil weakening, so there is relatively bearish macro influence."
Asian shares and commodities began the week down as Europe's debt crisis and China's slowdown continued to dent the outlook for global growth.
Chicago Board of Trade November soy lost 1.6 percent to $14.98-1/2 a bushel by 0257 GMT, the lowest since June 29. December corn fell 1.2 percent to $7.43-3/4 a bushel and December wheat gave up 0.6 percent to $8.51-3/4 a bushel.
U.S. corn export sales fell well short of expectations last week to just a fraction of the normal harvest-time pace and wheat exports slid for a third consecutive week to a four-month low.
Exports of U.S. corn totaled just 14,200 tonnes, compared with 1.3 million tonnes in the same week last year. Net sales of all classes of U.S. wheat stood at 279,900 tonnes, below trade estimates for sales between 350,000 and 550,000 tonnes.
Net soybean sales were 523,700 tonnes, below forecasts for 750,000 to 850,000 tonnes.
Asian shares fell on Monday on growth concerns ahead of the third-quarter corporate earnings season, lifting the safe-haven dollar, which, in turn, undermined commodities.
The dollar index, which measures the strength of the greenback against a basket of currencies, rose 0.4 percent.
U.S. crude oil fell almost 1 percent.
The soybean market is coming under additional pressure with expectations of higher U.S. output as late rains helped improve the crop yields.
The USDA, in its monthly demand and supply report on Thursday, raised its estimate of the soybean yield by 7 percent to 37.8 bushels per acre and above trade estimates for 37.0 bushels. Soybean production this year was raised 8.5 percent to 2.860 billion bushels.
Large speculators cut their bullish bet on soybeans by nearly 4 percent, the sixth straight week they have reduced net length in the commodity, as a fast harvest flooded the cash market with supplies, regulatory data showed on Friday.
The reduction brought the speculators' net length in soybeans to a four-month low, according to the Commodity Futures Trading Commission's weekly commitments of traders report.
Investors are turning their attention on South America where weather largely beneficial for soybean planting could add weight on the market.
Brazil and Argentina, the No. 2 and No. 3 soy producers after the United States, were likely to seed large areas to take advantage of historically high prices.
Prices at 0257 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 851.75 -5.00 -0.58% 872.80 40
CBOT corn 743.75 -9.00 -1.20% 766.70 44
CBOT soy 1498.50 -24.00 -1.58% 1580.49 27
CBOT rice $14.99 -$0.04 -0.27% $15.47 45
WTI crude $91.14 -$0.72 -0.78% $89.02 48
Currencies
Euro/dlr $1.291 $0.062 +5.03%
USD/AUD 1.022 -0.034 -3.17%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral;Editing by Clarence Fernandez)
* Soy falls below $15 a bushel, lowest since June 29
* Corn drops for 5 out of 7 sessions, wheat down
* Declining U.S. exports, global growth concerns weigh
By Naveen Thukral
SINGAPORE, Oct 15 (Reuters) - Chicago soy slid 1.6 percent on Monday, falling below $15 a bushel for the first time since late June , while corn lost more ground, with concerns over global growth fuelling the bearish sentiment arising from slowing U.S. grain exports.
Corn has dropped for five out of seven sessions and soybeans have fallen for the past four weeks as demand slows after prices surged to record highs this summer following the worst U.S. drought in 56 years.
"It appears that the seasonality continues to be a significant headwind, particularly in the oilseed market," said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia.
"We are seeing the U.S. dollar strengthening and crude oil weakening, so there is relatively bearish macro influence."
Asian shares and commodities began the week down as Europe's debt crisis and China's slowdown continued to dent the outlook for global growth.
Chicago Board of Trade November soy lost 1.6 percent to $14.98-1/2 a bushel by 0257 GMT, the lowest since June 29. December corn fell 1.2 percent to $7.43-3/4 a bushel and December wheat gave up 0.6 percent to $8.51-3/4 a bushel.
U.S. corn export sales fell well short of expectations last week to just a fraction of the normal harvest-time pace and wheat exports slid for a third consecutive week to a four-month low.
Exports of U.S. corn totaled just 14,200 tonnes, compared with 1.3 million tonnes in the same week last year. Net sales of all classes of U.S. wheat stood at 279,900 tonnes, below trade estimates for sales between 350,000 and 550,000 tonnes.
Net soybean sales were 523,700 tonnes, below forecasts for 750,000 to 850,000 tonnes.
Asian shares fell on Monday on growth concerns ahead of the third-quarter corporate earnings season, lifting the safe-haven dollar, which, in turn, undermined commodities.
The dollar index, which measures the strength of the greenback against a basket of currencies, rose 0.4 percent.
U.S. crude oil fell almost 1 percent.
The soybean market is coming under additional pressure with expectations of higher U.S. output as late rains helped improve the crop yields.
The USDA, in its monthly demand and supply report on Thursday, raised its estimate of the soybean yield by 7 percent to 37.8 bushels per acre and above trade estimates for 37.0 bushels. Soybean production this year was raised 8.5 percent to 2.860 billion bushels.
Large speculators cut their bullish bet on soybeans by nearly 4 percent, the sixth straight week they have reduced net length in the commodity, as a fast harvest flooded the cash market with supplies, regulatory data showed on Friday.
The reduction brought the speculators' net length in soybeans to a four-month low, according to the Commodity Futures Trading Commission's weekly commitments of traders report.
Investors are turning their attention on South America where weather largely beneficial for soybean planting could add weight on the market.
Brazil and Argentina, the No. 2 and No. 3 soy producers after the United States, were likely to seed large areas to take advantage of historically high prices.
Prices at 0257 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 851.75 -5.00 -0.58% 872.80 40
CBOT corn 743.75 -9.00 -1.20% 766.70 44
CBOT soy 1498.50 -24.00 -1.58% 1580.49 27
CBOT rice $14.99 -$0.04 -0.27% $15.47 45
WTI crude $91.14 -$0.72 -0.78% $89.02 48
Currencies
Euro/dlr $1.291 $0.062 +5.03%
USD/AUD 1.022 -0.034 -3.17%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral;Editing by Clarence Fernandez)
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