GRAINS-Chicago soybeans slip after three-day rally
BEIJING/PARIS, June 18 (Reuters) - Chicago soybean futures eased on Wednesday as traders booked profits after a three-day price rally driven by strength in soyoil and the broader energy market, with continuing tariff uncertainty also pressuring prices.
The most active soybean contract Sv1 on the Chicago Board of Trade was 0.2% down by 1055 GMT at $10.71-3/4 a bushel, though still hovering near a one-month high.
Support for agricultural commodities such as soybeans and corn has been underpinned by rising energy prices, fuelled by escalating tensions between Israel and Iran. Higher crude oil prices improve the competitiveness of soyoil and corn as biofuel feedstocks.
Market participants are keeping a close eye on developments in U.S. biofuel policy.
A tax bill proposed by Senate Republicans on Monday would extend a clean fuel tax credit through 2031 but reduce its value by 20% for biofuels made from feedstocks produced outside the United States.
Traders are also monitoring tariff developments between Washington and Beijing, the largest buyer of U.S. soybeans.
China's move to reduce soymeal use in animal feed could lower soybean imports by about 10 million metric tons by 2030, easing its reliance on foreign supply.
In top producer Brazil, soy exports are forecast to reach 14.37 million tons in June, up from 14.08 million tons the previous week, said Anec, a Brazilian trade group representing grain exporters.
Corn futures rose 0.17% to $4.32-1/4 a bushel, supported by uncertainty over crop weather in the U.S. Midwest, with traders awaiting more definitive forecasts.
Wheat futures rose 0.55% to $5.52 a bushel, buoyed by a slower than average U.S. winter wheat harvest, which reached 10% completion compared with a five-year average of 16%.
Farm office FranceAgriMer has increased its forecast for French soft wheat exports within and outside the European Union in 2024/25, but the EU's biggest grain producer is still on course for its worst wheat export campaign this century after a rain-hit harvest.
Prices at 1055 GMT | |||
Last | Change | Pct Move | |
CBOT wheat Wv1 | 552.00 | 3.00 | 0.55 |
CBOT corn Cv1 | 432.25 | 0.75 | 0.17 |
CBOT soy Sv1 | 1071.75 | -2.25 | -0.21 |
Paris wheat BL2Z4 | 202.75 | 0.75 | 0.37 |
Paris maize EMAc1 | 189.00 | 0.25 | 0.13 |
Paris rapeseed COMc1 | 492.00 | -0.50 | -0.10 |
Euro/dlr EUR= | 1.15 | 0.00 | 0.13 |
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne | |||
Related Articles
Why Are So Many Stablecoins Failing? How Should Investors Choose the Right Stablecoin?
While stablecoins are considered safe assets in crypto, they still facereserve risks, algorithmic failures, and regulatory challenges. Investors should prioritize transparent, compliant, and highly liquid stablecoins, diversify holdings, and avoid relying on a single stablecoin to mitigate risks.
Circle Rallies 34% on GENIUS Act Tailwinds — What’s Next for Stablecoin Investors?
TradingKey - In a major milestone for crypto regulation, the U.S. Senate on Tuesday passed the GENIUS Act — a landmark bill that lays the groundwork for federal oversight of U.S. dollar-pegged stablecoins.
June FOMC meeting: Fed Holds Steady Amid Crosscurrents, Why Inaction May Be the Best Policy for Now
TradingKey - On June 18, the Federal Reserve released the June FOMC statement as scheduled, maintaining the benchmark interest rate at 4.25%–4.50%, in line with market expectations. After Powell's speech, the market quickly digested. The latest dot plot shows that the probability of the Federal...
[IN-DEPTH ANALYSIS] Australia: Under the Influence of Domestic and International Factors, AUD/USD Remains Bullish in the Short Term
Following the AUD/USD exchange rate increase in April and May this year, we believe there remains upside potential for the currency pair in the short term (0-3 months).
