Chicago soybeans and corn futures have fallen to four-year lows, dipping below $10 and $4 a bushel, respectively, as traders anticipate a U.S. government report forecasting larger crop yields. The Chicago Board of Trade’s most active soybean contract fell 0.5% to $9.97-3/4 a bushel, while corn dropped 0.3% to $3.93-3/4 a bushel, marking their lowest prices since late 2020. Wheat prices also declined by more than 1%, trading at $5.37-1/4 a bushel.
Market sentiment is bearish, driven by expectations of increased U.S. production and ample global supplies. Analysts predict that the U.S. Department of Agriculture’s (USDA) monthly world agricultural supply and demand estimates, due later on Monday, will indicate larger harvests for soybeans, corn, and wheat, contributing to an oversupply amid weak demand.
Wheat traders are closely monitoring Egypt’s significant wheat tender, with expectations that low prices from Russian and other Black Sea suppliers will dominate the bidding. A German trader noted that prices from these regions are approximately $20 cheaper than those from Western Europe, reducing competition from other origins.
The decline in wheat prices was somewhat mitigated by adverse crop forecasts from France and other parts of Europe, where France’s 2024 soft wheat crop is projected to be 25% lower than the previous year due to excessive rainfall.