Corn, soybeans ease on expected planting progress
May 9, 2022
05/09/2022 | 03:27pm EDT
* CBOT corn, soybeans pressured by improving plantingweather
* China demand concerns also curb commodity markets
CHICAGO, May 9 (Reuters) - Chicago soybean futures fell onMonday to five-week lows as warmer U.S. weather expeditedplanting progress, deflating fears of added soybean acres andfurther cuts to corn plantings, traders said. Wheat remained underpinned by dry conditions in the U.S. andFrench growing belts, reinforcing global supply concerns. The most-active Chicago Board of Trade soybean (CBOT)contract lost 36-3/4 cents at $15.85-1/2 a bushel afterfalling to $15.78, its lowest since April 4.
CBOT corn dropped 12-3/4 cents to end at $7.72 abushel after earlier touching its lowest since April 13, whileCBOT wheat fell 15-3/4 cents at $10.92-3/4 a bushel. Delayed corn planting amid cold, wet conditions has led sometraders to anticipate a shift to soybean plantings, but improvedconditions across much of the U.S. Midwest have acceleratedplanting progress, said Dan Smith, senior risk manager at TopThird Ag Marketing. "They're taking all the fluff out of the trading premiumthat was put into the market with weather delays," he said. Analysts on average expect the U.S. agriculture departmentto report corn planting progress as 25% complete by May 8, upfrom 14% a week earlier, while soybean plantings are expected tobe 16% complete, up from 8% a week ago. Global markets added pressure, as crude oil sank 4% ondemand concerns as prolonged lockdowns in China restrictconsumption. "That's not friendly to the corn market," said Kristi VanAhn-Kjeseth, chief operating officer at consulting firm Van Ahnand Company, Inc. "The market's not paying a whole lot ofattention to the fundamental side of things. It's really focusedon the macro environment." In China, soybean imports in the first four months of theyear edged down, customs data showed on Monday, while meatimports fell 36% versus 2021. U.S. exporters readied 503,414 tonnes of soybeans forshipment during the week ended May 5, the USDA said, down 16.75%from the previous week, but in line with a Reuters poll ofanalysts. Corn inspections reached 1.393 million tonnes, down 17.89%from a week earlier, while wheat shippers logged 236,847 tonnes,39.65% lower than the week prior. Wheat inched lower as recent rainfall across parts of theU.S. Plains quenched winter wheat crops plagued by drought,though ongoing dryness in the United States, France and India isunderpinning markets. Markets also began positioning ahead of the USDA's upcomingmonthly global supply and demand report, scheduled for Thursday,May 12, traders said. (Reporting by Christopher Walljasper; Additional reporting byGus Trompiz in Paris and Naveen Thukral in Singapore; Editing byChris Reese and Sandra Maler)