GRAINS-Soybeans stay weak amid biofuel doubts, corn and wheat edge up
PARIS/BEIJING, Sept 18 (Reuters) - Chicago soybean futures fell for a second straight session on Thursday, pressured by weaker soyoil prices following a U.S. biofuel proposal that disappointed the market.
Corn and wheat edged up, steadying after a day-earlier fall. A slight fall in the dollar as investors digested a U.S. interest rate cut helped underpin the cereal markets. FRX/
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.4% at $10.40 per bushel by 1111 GMT, easing further from a two-week top during the previous session.
The market came under pressure after Tuesday's U.S. Environmental Protection Agency (EPA) proposal failed to clarify how biofuel blending obligations would be reallocated under the government's Small Refinery Exemption program.
Biofuel mandates absorb a significant amount of soyoil for use in renewable diesel. CBOT soyoil BOv1 was down 0.6% after sliding nearly 3% on Wednesday.
"Uncertainty remains high regarding the EPA's upcoming decisions," Argus analysts said in a note.
A lack of Chinese purchases of U.S. soybeans, amid a trade battle between Beijing and Washington, was also hanging over the soy market as Midwest farmers enter their autumn harvest season.
The market is watching to see if a call scheduled for Friday between U.S. President Donald Trump and Chinese President Xi Jinping yields progress towards resuming soybean trade.
The Financial Times, citing Agriculture Secretary Brooke Rollins, reported that the Trump administration is drawing up plans to use tariff revenue to fund support for U.S. farmers.
CBOT corn Cv1 inched up 0.1% to $4.27 a bushel. Prices fell back on Wednesday from a 2-1/2-month peak linked to strong exports and doubts over the size of harvest yields.
CBOT wheat Wv1 rose 0.5% to $5.30-3/4 a bushel, after retreating on Wednesday from a seven-week high also supported by brisk exports.
Traders will get a demand update later on Thursday from the U.S. Department of Agriculture's weekly export sales data.
"American operators will closely follow the weekly export sales figures ... given the recent rebound in prices," Argus said.
Prices at 1111 GMT | |||
Last | Change | Pct Move | |
CBOT wheat Wv1 | 530.75 | 2.50 | 0.47 |
CBOT corn Cv1 | 427.00 | 0.25 | 0.06 |
CBOT soy Sv1 | 1040.00 | -3.75 | -0.36 |
Paris wheat BL2c1 | 192.75 | 0.50 | 0.26 |
Paris maize EMAc1 | 190.25 | 0.50 | 0.26 |
Paris rapeseed COMc1 | 472.25 | 1.50 | 0.32 |
WTI crude oil CLc1 | 64.01 | -0.04 | -0.06 |
Euro/dlr EUR= | 1.18 | 0.00 | 0.14 |
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton | |||
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