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GRAINS-Soybeans set for first monthly drop since mid-2020 on better U.S. planting prospects

Published 31/03/2021, 10:10 pm
© Reuters.
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* USDA report expected to show higher corn, soybeans plantings

* Soybeans, corn on track to extend quarterly gaining streak (Updates prices, adds detail)

By Naveen Thukral and Sybille de La Hamaide

PARIS, March 31 (Reuters) - Chicago soybean futures edged higher on Wednesday but were poised for their first monthly decline since mid-2020 on expectations for higher U.S. plantings and improved weather in South America.

Corn was set for a monthly drop for the first time in eight months, while wheat has dropped almost 9% this month after closing marginally lower in February.

"The USDA's (U.S. Department of Agriculture) planting prospects report tonight is perhaps a factor in the fall," said Tobin Gorey, director of agriculture strategy, Commonwealth Bank of Australia.

"Traders would have been less willing to accumulate futures with that report looming."

The most-active soybean futures on the Chicago Board of Trade (CBOT) Sv1 were up 0.5% at $13.74 a bushel by 1041 GMT. Soybeans are down 2.1% so far in March, after gaining for nine consecutive months.

Corn was on track for a monthly drop after rallying since August and wheat was set for its biggest monthly slide since February 2019, pressured by improving global production prospects.

Agricultural markets are bracing for Wednesday's USDA planting intentions and quarterly grain stocks reports, which have a history of rattling markets.

Analysts on average expect the USDA to project expanded plantings of U.S. corn and soybeans in 2021 versus last year, while March 1 stocks of corn, soy and wheat were seen as the lowest in several years. U.S. soybean crush likely fell to 4.952 million short tons in February, or 165.1 million bushels, according to the average forecast of nine analysts surveyed by Reuters ahead of a monthly USDA report. ranged from 164.0 million to 170.0 million bushels, with a median of 164.4 million bushels.

Commodity funds were net sellers of CBOT corn, soyoil, soybean and wheat futures contracts on Tuesday and were net even in soymeal futures, traders said. COMFUND/CBT

Prices at 1041 GMT

Last Change

Pct

End

Ytd

Move

2020

Pct

Move CBOT wheat Wv1

604.50

2.75 0.46 640.50 -5.62 CBOT corn Cv1

539.50

0.25 0.05 484.00 11.47 CBOT soy Sv1

1374.00

7.25 0.53 1311.00 4.81 Paris wheat BL2K1

210.50

0.75 0.36 213.25 -1.29 Paris maize EMAc1

211.50

0.50 0.24 219.00 -3.42 Paris rapeseed COMc1

499.25 -2.00 -0.40 418.25 19.37 WTI crude oil CLc1

60.30 -0.25 -0.41

48.52 24.28 Euro/dlr EUR=

1.17

0.00 0.13 1.2213 -3.96 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne

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