By Naveen Thukral
SINGAPORE, Jan 10 (Reuters) – Chicago soybean futures slid on Monday, giving up some of the previous session’s gains, although declining production in the world’s top exporter Brazil limited losses.
Corn and wheat prices eased in Asian trade.
“It is the dry weather in South America that is driving the market,” a Singapore-based grains and oilseeds trader said. “The damage could reduce yields.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 fell 0.6% to $14.02-1/4 a bushel by 0256 GMT.
Corn Cv1 lost 0.3% to $6.05-1/2 a bushel and wheat Wv1 gave up 0.3% to $7.56-1/2 a bushel.
The agricultural markets are looking for a direction from a series of U.S. Department of Agriculture (USDA) crop reports scheduled for Jan. 12, including updated estimates of South American production. USDA/EST
The La Nina climate phenomenon affected Brazilian soybean and corn crops last year and could harm production this year again, according to a Bank of America Securities research note.
It said the 2020/21 season has brought opposite climate conditions for Brazil’s regions: The Center-West and Northeast have suffered from heavier rainfall while the South has been hit by drought.
Large speculators cut their net long position in CBOT corn futures in the week to Jan. 4, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.
(Reporting by Naveen Thukral; Editing by Rashmi Aich)
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