SINGAPORE, Jan 6 (Reuters) – Chicago soybean futures fell on Thursday, after three days of strong gains, with the slide limited by adverse weather in South America that could result in yield losses.
Corn and wheat lost ground.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 dropped 0.5% to $13.88-1/4 a bushel, as of 0109 GMT.
* Corn Cv1 fell 0.1% to $6.01-1/2 a bushel and wheat Wv1 slid 0.4% to $7.57-3/4 a bushel.
* A hot and dry spell in Argentina and southern Brazil has shifted attention back to potential yield losses for soybean and corn crops in the major exporting countries.
* Weather in Argentina has changed drastically since mid-December, with dryness threatening corn crops as they enter critical development stages, analysts said.
* South American supply prospects will be a focus for grain markets in a monthly world crop report from the U.S. Department of Agriculture (USDA) due on Jan. 12.
* Brazil’s soybean exports are expected to reach 3.375 million tonnes in January, while corn exports will likely reach 2.59 million tonnes, according to agricultural association ANEC.
* Commodity funds were net buyers of CBOT soyoil and soybean futures contracts on Wednesday and net sellers of corn, wheat and soymeal, traders said. COMFUND/CBT
MARKET NEWS
* U.S. stocks slid and Treasury yields jumped on Wednesday after meeting minutes released by the Federal Reserve indicated that it might not only raise interest rates sooner than expected but could also reduce its overall asset holdings to tame high inflation. MKTS/GLOB
DATA/EVENTS (GMT)
0030 Japan Services PMI Dec
0145 China Caixin Services PMI Dec
0700 Germany Industrial Orders MM Nov
0930 UK Reserve Assets Total Dec
1300 Germany CPI Prelim YY Dec
1300 Germany HICP Prelim YY Dec
1330 US International Trade Nov
1330 US Initial Jobless Clm Weekly
1500 US Factory Orders MM Nov
1500 US ISM Non-Mfg PMI Dec
(Reporting by Naveen Thukral; editing by Uttaresh.V)
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