Soybean Prices Rise Following U.S. Harvest Downgrade
Soybean futures rose on Monday, reaching near a five-week high, bolstered by a reduction in the U.S. soybean production estimate by the U.S. Department of Agriculture (USDA) and a surge in prices for oilseeds and vegetable oils.
The most active soybean contract on the Chicago Board of Trade (CBOT) gained 0.8%, reaching $10.38 per bushel, after touching $10.44 per bushel on Friday.
U.S. farmers planted less soybean and corn this year due to drought conditions impacting crops, according to the USDA’s Friday report. Despite this, supplies remain substantial, with estimates indicating the second-largest soybean harvest and the third-largest corn harvest in history. Additionally, the USDA forecasts the highest ending stocks for both crops in the past five years.
Soybean prices were also supported by a rise in soybean oil prices, with December soybean oil on the CBOT hitting a seven-month high amid increasing vegetable oil prices.
In contrast, corn futures fell after reaching their highest level since June on Friday, following the USDA’s downgrade of the U.S. corn harvest. Corn futures dropped 0.2% to $4.30 per bushel, while wheat futures declined by 1.3%, reaching $5.65 per bushel due to improved growing conditions in the U.S., the Black Sea region, and Europe.
In other commodities, oil prices fell more than 2% on Monday after China’s latest stimulus plan failed to meet investor expectations for boosting demand in the world’s second-largest oil consumer. At the same time, concerns over increased supply expected in 2025 added further pressure to prices.
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