U.S. grains: Soy falls below US$9 on South America weather, trade doubts
By Julie Ingwersen, Reuters
via Canadian Cattlemen - November 22, 2019
Chicago | Reuters — U.S. nearby soybean futures closed below $9 a bushel on Friday for the first time since September, pressured by improving crop weather in South America and fears that an initial U.S.-China trade deal could be pushed back to next year, analysts said.
Wheat futures ended higher, while corn settled narrowly mixed.
Chicago Board of Trade January soybeans finished down four cents at $8.97 per bushel after dipping to $8.95-1/2, the lowest spot price on a continuous chart since Sept. 30.
CBOT December wheat settled up 6-1/4 cents at $5.15-1/4 a bushel but stayed inside of Thursday’s trading range. December corn ended up 1/4 cent at $3.68-3/4 a bushel, while deferred corn contracts closed modestly lower.
Soybean futures fell for a third straight session as forecasts called for beneficial rains in crop areas of Brazil and Argentina, the world’s No. 1 and No. 3 soy producers. The United States is the No. 2 soy grower.
“Planting has moved along impressively in Brazil and Argentina. Improved weather in South America is weighing on soybeans,” said Don Roose, president of Iowa-based U.S. Commodities.
The soy market has also been pressured this week by uncertainty about prospects for a U.S. trade deal with China, the top global soy importer. U.S. President Donald Trump told Fox News a trade deal was “potentially very close,” adding to optimism following remarks by President Xi Jinping that Beijing wanted to work out an initial agreement.
Reports earlier in the week had indicated a deal could be delayed to 2020.
“We keep hearing positive things, but we keep kicking the can down the road,” Roose said of a potential “phase one” deal.
CBOT corn drew support...
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