Chicago Board of Trade experienced a decline in soybean futures on Thursday due to government crop data adjusting the forecast for Brazil's soybean crop following adverse weather conditions during this season.
The exact extent of the crop reduction remains unclear, as estimates from the U.S. Department of Agriculture and Brazilian crop agency Conab continued to diverge, creating uncertainty among traders.
Simultaneously, the USDA raised Brazil's 2022-2023 record soybean crop and its soy ending stocks, as indicated in the monthly world supply and demand report released on Thursday. Analyst Susan Stroud noted the sustained impact of last year's record crop, emphasizing Brazil's surplus bushels still in storage.
Given Brazil's position as the world's largest soy supplier, its harvest dynamics significantly aect global sales and competitiveness with the United States.
Corn futures briefly turned positive, albeit easing back down, following news of Brazil's corn crop being slightly smaller than anticipated, according to traders. Wheat futures continued to face pressure due to falling prices in Russia, a key wheat exporter, intensifying concerns about sti competition for exports.
At 1823 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.63% at $11.81-1/2 a bushel. CBOT corn was down 0.52% at $4.32 a bushel, and CBOT wheat was down 2.82% at $5.85 a bushel.
Soybean futures experienced a mid-session decline after the USDA adjusted Brazilian soy production to 156 million metric tons, down from 157 million tons in January, as per the monthly global supply and demand report.
This forecast significantly contrasts with Conab's estimate released on Thursday, pegging Brazil's 2023/24 soybean crop at 149.4 million metric tons.
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