PALMOILMAGAZINE, SINGAPORE – On Thursday, August 29, 2024, soybean and corn prices at the Chicago Board of Trade (CBOT) saw slight increases following recent pressure from improved weather and rain in the Midwest. Despite this, grain prices have risen for the third consecutive session, although cheaper supplies from the Black Sea region have limited further gains.
At 04:21 GMT, soybean contracts rose by 0.3% to $9.79-3/4 per bushel, while corn increased by 0.2% to $3.91-1/2 per bushel. Grain prices also saw a 0.1% rise, reaching $5.42-1/4 per bushel.
However, soybean prices remained bearish due to ongoing weather-related concerns in the Midwest. “Soybean prices could decline due to weather issues in the Midwest,” a trader in Singapore noted, as reported by Palmoilmagazine.com and Reuters. “While cheaper cargo from the Black Sea could impact grain prices, overall supply remains tight.”
The potential damage to soybean crops from hot weather and drought in the Midwest has influenced recent price movements. Although recent rains have helped, there are lingering concerns about whether they will be sufficient to ensure optimal soybean yields.
In Europe, the intense rain damaged grain harvest in Germany and French even though the cheap exports from the Black Sea would maintain the supply in the world and press the exports from USA. This made the grain competitive in price and the producers from the Black Sea, such as, Russia and Ukraine could offer cheaper price than the producers in USA.
Grain production in Canada could be increasing more than 4 percent, according to Statistics Canada. It could be smaller production, not like the analysts hoped – predicting to be about 35,125 million tons. The official data predicted the total production could be around 34,4 million tons to 32,9 million tons in 2023.
The farmers in Ukraine started planting grain in the cold season for the 2025 harvest that would lay on about. 2000 hectares and 600 hectaers for cold season barley. Last year, the grain planting in cold season in Ukraine started in the early of September.
In India, the government still considered to increase vegetable oil import tax to protect the farmers in the country that were hit by the cheap seed oils, as two officials mentioned.
In commodity trade, the fund of the commodities was recorded as the clean buyers of soyoil and grain oil in the Chicago Board of Trade but they would be the sellers for soyoil, corn oil, and soybean flour contracts on Wednesday, according to the traders. (P2)
