Chicago soybean futures slipped on Tuesday, surrendering gains from the previous session, as large supplies from South America weighed on the market.
Corn and wheat futures also failed to sustain an overnight rise fuelled by bargain buying.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was 0.4% lower at $11.50-3/4 a bushel by 1130 GMT, after rising 0.3% in the previous session.
Wheat Wv1 fell 0.4% to $5.61-3/4 a bushel after rising 1.1% on Monday.
CBOT corn Cv1 fell 0.2% to $4.29-1/4 a bushel after rising 1.2% in the previous session.
Forecasts for Brazil and Argentina’s soybean harvests are expected to be bountiful despite some analysts downgrading the Brazilian forecast.
The large South American supplies are expected to lead to a jump in global stocks this season.
“As a result, no further significant price recovery can be expected in the short term,” Commerzbank said in a note.
Brazil’s soybean harvest for the 2023/24 cycle had reached 48% of the planted area as of last Thursday, agribusiness consultancy AgRural said on Monday, up 8 percentage points from the previous week.
Commodity funds were covering short positions ahead of a monthly U.S. Department of Agriculture supply and demand report on Friday, where traders will assess the USDA’s latest estimates on corn and soy production in South America.
China on Tuesday sharply expanded its budget to stockpile grains and edible oils this year and stepped up support and policies to boost soybean and grains production.
In Australia, wetter weather should boost production of winter crops, including wheat, barley and canola, to 51 million metric tons in 2024/25 from 46.7 million tons in the current season, an agriculture ministry official said.
Indonesia is likely to import larger volumes of wheat in 2024 compared to 10.87 million metric tons shipped last year, driven by higher demand for flour and animal feed, a senior industry official said on Tuesday.