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Soybeans underpinned by China demand optimism, Argentina drought
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Wheat, corn steady after lows this week on export concerns
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Quiet USDA monthly crop report raises U.S. corn stocks
CHICAGO, Dec 9 (Reuters) - Chicago soybeans eased on Friday after the U.S. Department of Agriculture (USDA) increased its estimate of global ending stocks, though strong exports and South American weather concerns underpin the market.
Corn traded both sides of even, despite an increase in U.S. stockpiles, while wheat eased.
The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 3-3/4 cents to $14.86-1/2 by 12:01 p.m. (1801 GMT).
The contract earlier reached its highest since Sept. 13 at $14.92-3/4, just above a previous three-month top on Thursday.
CBOT wheat fell 12-1/2 cents to $7.33-3/4 a bushel, while corn last picked up 1-1/4 cent to $6.43-3/4 a bushel.
Soybeans eased despite support from increased export demand and dry conditions in top-producer Argentina, though recent rains could aid the early South American crop.
Exports from Argentina could be hampered by an unwillingness by growers in the country to sell old crop until they see the condition of the upcoming harvest, said Mike Zuzolo, president of Global Commodity Analytics.
"Argentine farmers are holding back on selling as aggressively," he said. "They're holding old crop until they know their new crop is made."
Gains in soybeans are further limited by sluggishness in the grains complex.
"I think we’re at a price level now where, if soybeans want to take out $15.00, they’re really going to need the wheat and corn with them," said Zuzolo.
The USDA's monthly supply and demand report was mostly in line with market expectations, so did little to move the markets.
"There's nothing in this report that should have come as a surprise to anyone. Fifteen minutes after this report came out, the market was already looking forward to what the January report would say," said Karl Setzer, commodity risk analyst at Agrivisor.
Ukrainian corn exports are expected to reach 17.50 million tonnes for the 2022/2023 marketing year, the USDA said, up from 15.5 million tonnes in its November report. Global ending stocks for corn were decreased by 2.36 million tonnes to 298.40 million tonnes.
2022/2023 world ending stocks for soybeans increased by 540,000 tonnes to 102.71 million tonnes, while global wheat supplies dropped by 490,000 tonnes to 67.33 million tonnes, the USDA said. (Reporting by Christopher Walljasper Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore Editing by Mark Potter)
