Soybeans Drop to Four-Year Low Amid Brazil’s Outlook
Soybean futures in Chicago dropped to their lowest level in four years before Thursday’s market opening, pressured by expectations of a record harvest in Brazil and falling soybean oil prices.
The decline in oil prices followed the omission of biodiesel subsidies from the U.S. government’s latest spending bill.
Corn futures also followed soybeans lower, while wheat prices fluctuated as traders weighed a reduction in Russian wheat production estimates against strong harvests in Australia and Argentina.
The strength of the U.S. dollar further added pressure on soybean and other grain futures. The most active soybean contract on the Chicago Board of Trade fell 24 cents to $9.5250 per bushel after reaching $9.5425—the lowest since September 2020.
In Brazil, the world’s largest producer and exporter of soybeans, recent rainfall alleviated drought conditions, setting the stage for a record-breaking harvest of 171.5 million metric tons, according to consultancy AgRural.
Agricultural Market Outlook
Soybean prices were also affected by steep losses in soybean oil after Tuesday’s announcement that the U.S. government’s interim funding bill excluded biodiesel subsidies and other agriculture-related measures.
Corn futures in Chicago dropped 5.75 cents to $4.3775 per bushel, dragged down by soybean weakness. Wheat futures fell 3 cents to $5.42 per bushel.
Meanwhile, China is advancing its agricultural modernization and aims to stabilize grain planting areas to ensure stable and high production levels. According to state media reports from Wednesday’s annual rural policy meeting, the country recorded a record grain output of 706.5 million metric tons this year, including 294.92 million metric tons of corn. Despite this, China remains reliant on imports and is committed to boosting domestic production to become an “agricultural powerhouse.”
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