Soybeans at new three-month low as supply pressure builds -October 03, 2023 at 08:19 am EDT

PARIS/CANBERRA, Oct 3 (Reuters) – Chicago soybean
futures fell on Tuesday to a new three-month low as improving
signs for the U.S. harvest and a brisk start to planting in
Brazil created supply pressure.

Corn ticked lower as the U.S. harvest also curbed prices,
while wheat edged up as it recovered further from Friday’s
plunge to a three-year low.

Most-active Chicago Board of Trade (CBOT) soybeans
were 0.8% down at $12.66-1/2 a bushel by 1208 GMT. It earlier
reached its weakest since June 29 at $12.63-1/4, slightly below
a previous three-month low from Monday.

CBOT corn eased 0.2% to $4.87-3/4 a bushel, while
wheat added 1% to $5.70-1/2 a bushel.

A firmer dollar and weaker crude oil weighed
on grain markets, curbing impetus from start-of-month buying
that had supported futures on Monday, analysts said.

“The macro environment has turned more bearish via the
stronger U.S. dollar, weaker commodity currencies, and lower
crude oil prices,” Peak Trading Research said in a note.

U.S. government data showed after Monday’s market close that
soybean crop ratings improved last week. Harvest progress was
slower than analysts had expected but was still ahead of the
average pace of the past five years.

The U.S. Department of Agriculture’s (USDA) figures showed
corn crop ratings were unchanged while the harvest was ahead of
the five-year average pace though below analyst estimates.

Soybeans had already faced supply pressure on Friday when
the USDA pegged U.S. supplies above market expectations in a
separate stocks report.

Brokerage StoneX, meanwhile, raised its estimates
of U.S. 2023 corn and soybean production.

In Brazil, which competes with the United States in export
markets, 2023/24 soybean planting reached 5.2% of the expected
area last week, the quickest pace ever for the period, an
agribusiness consultancy said.

The wheat market was consolidating after two volatile
sessions in which it dropped more than 6% to a three-year low on
Friday before recouping over 4% on Monday.

Wheat traders are still grappling with ample short-term
supply of Black Sea grain along with drought risks to upcoming
harvests in Argentina and Australia.

“Prices will be higher in 6 months but the bottom is not
here yet,” , said Ole Houe, director of advisory services at
brokerage IKON Commodities.

Wheat was dented on Friday when the USDA unexpectedly raised
its estimate for U.S. production. That added to supply pressure
from bumper Russian supplies and signs that war-torn Ukraine is
resuming grain shipments from seaports.
(Reporting by Gus Trompiz in Paris and Peter Hobson in
Canberra; Editing by Rashmi Aich and Shounak Dasgupta)