Soybeans dropped for a second day as the harvest advances in Brazil, poised to be the largest grower this year, boosting supplies available for shipment.
About 10.5 million metric tons of soybeans and products were scheduled for shipment on vessels berthed, arrived or expected at major ports in Brazil as of yesterday, from 10.27 million tons a week earlier, according to SA Commodities and Unimar Agenciamentos Maritimos. About 48 percent of the crop was harvested as of March 8, researcher Safras & Mercado said. The country may harvest a record crop of 83.5 million tons this year, according to U.S. Department of Agriculture estimates.
“Reports that the Brazilian soybean harvest continues to surge ahead, and that supplies are making their way through to the port onto waiting ships, weighed on prices,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia (CBA), wrote in a report today.
Soybeans for May delivery fell 0.4 percent to $14.635 a bushel by 7:15 a.m. on the Chicago Board of Trade. Trading volume was 27 percent lower than the 100-day average for that time of day.
Ships are waiting as many as 60 days to load the oilseed at Brazilian ports, Hamburg-based researcher Oil World said yesterday. Soybean prices may decline in the second half of the year as Brazil’s shipping delays ease while U.S. farmers boost output, it said.
Corn for May delivery rose 0.3 percent to $7.1625 a bushel. Wheat for May delivery climbed 0.4 percent to $7.0625 a bushel in Chicago. In Paris, milling wheat for the same delivery month gained 0.3 percent to 233.25 euros ($303.48) a ton on NYSE Liffe. The grain fell to an eight-month low at 230 euros on March 8.
Wheat exports from Australia, the world’s third-biggest shipper, may climb 13 percent to 18 million tons in the year beginning November, according to CBH Group, the nation’s largest grain handler. India, the second-largest wheat grower, after China, is seeking to export the grain to Egypt, the world’s biggest buyer, the Egyptian Trade and Supply Minister Bassem Oda said today.