CANBERRA, Nov 10 (Reuters) – U.S. soybean futures edged lower on Wednesday, though a surprising cut by the U.S. Department of Agriculture (USDA) to its domestic yield estimate provided a floor to losses.
FUNDAMENTALS
* The most active soybean futures on the Chicago Board Of Trade Sv1 were down 0.1% at $12.11 a bushel, as of 0217 GMT, having firmed 2% on Tuesday when prices had earlier hit a December 2020 low of $11.81-1/4 a bushel.
* The most active corn futures Cv1 were up 0.2% at $5.55-3/4 a bushel, having gained 0.6% in the previous session.
* The most active wheat futures Wv1 were up 0.5% at $7.82 a bushel, having closed 1.4% firmer on Tuesday.
* The USDA pegged production at 4.425 billion bushels on a yield of 51.2 bushels per acre in a monthly crop report. That was below analysts’ expectations for a harvest of 4.484 billion bushels with a yield of 51.9 bushels, and down from the USDA’s October forecast for a 4.448 billion bushel crop with a yield of 51.5 bushels.
* Favourable planting conditions for soybeans in Brazil and easing Chinese import demand have recently added to pressure on soybean futures.
* The USDA report showed U.S. corn output will be bigger than previously projected as farmers recorded their highest yield. The agency trimmed its estimate for the U.S. 2021-22 corn carryout from last month and raised its outlook for U.S. soybean-ending stocks.
* Global wheat-ending stocks were pegged at 275.80 million tonnes, below analyst estimates for 276.50 million tonnes and down from the USDA’s October estimate of 277.18 million tonnes.
MARKET NEWS
* The dollar held a three-day loss against major peers and traded near a one-month low to the yen on Wednesday, with highly anticipated U.S. inflation data looming that could guide the timing of a Federal Reserve interest rate increase. USD/
* Oil prices rose on Wednesday, extending strong gains in the previous session, after industry data showed U.S. crude stocks unexpectedly fell last week just as near term travel demand picked up with pandemic curbs easing. O/R
* Asian stockmarkets were becalmed on Wednesday as surges in oil and Chinese factory prices added to worries that a hot U.S. inflation reading could renew pressure on policymakers to lift interest rates. .N
(Reporting by Colin Packham; Editing by Sherry Jacob-Phillips)
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