Band Tom Polansek
CHICAGO, June 10 (Reuters) – Chicago Board of Trade soybean futures weakened on Friday, after hitting a record high in a rally in the previous session, fueled by strong export demand and worries about U.S. supplies.
Supply issues remained, with the US Department of Agriculture cutting its estimate of 2021/22 national ending stocks to 205 million bushels in a monthly report. That was down from the USDA’s May estimate for 235 million and below analysts’ expectations for 218 million.
The USDA raised its 2021/22 U.S. soybean export outlook by 30 million bushels to 2.17 billion.
“The US soybean numbers were supportive, but the trade had already worked out in the upward revision to exports,” said Terry Reilly, senior commodities analyst for Futures International.
For 2022/23, the USDA pegged U.S. soybean stocks at 280 million bushels, below its May estimate of 310 million and analyst expectations of 307 million. Still, global stocks were projected at 100.46 million tonnes, slightly up from last month and above analysts’ expectations.
Most active CBOT soybean futures Sv1 were down 21-1/2 cents at $17.47-1/2 a bushel as of 11:55 a.m. CDT (4:55 p.m. GMT). On Thursday, the contract hit its highest since September 2012 at $17.84 a bushel, near an all-time high of $17.89.
“The United States continues to see strong export sales of soybeans, which is bolstering prices for heirloom crops,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
CBOT corn futures were little changed as traders analyzed weather forecasts for the U.S. harvest. The heat expected in the coming days could threaten corn, after cold weather delayed spring planting, said Jim Gerlach, president of A/C Trading.
“The heat at this time really saps soil moisture quickly,” Gerlach said.
Most Active Corn CV1 was down 1/2 cent at $7.72-1/4 a bushel. CBOT wheat Wv1 was down 2-1/4 cents at $10.69.
(Reporting by Tom Polansek in Chicago. Additional reporting by Gus Trompiz in Paris, Naveen Thukral in Singapore and Karl Plume in Chicago; Editing by Emelia Sithole-Matarise, Kirsten Donovan)
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