SOY/GRAINS: Soybeans Head for Biggest Monthly Slump Since 2018

Soybeans Set for Worst Month Since 2018 on Virus Fears, Trade

31 Jan 2020, 04:42 PM IST

(Bloomberg) --

Soybean futures headed for their biggest monthly drop since mid-2018 as the spreading coronavirus upends supply chains in top consumer China and crop outlooks improve in Brazil and Argentina.

Prices are down about 8% this month amid a broader commodity selloff in the wake of the virus outbreak. The spread of cases will keep many Chinese regions on extended holidays, potentially disrupting supply chains and logistics. That’s compounding disappointment over the country’s lack of buying of U.S beans since it signed a trade deal earlier this month.

In Brazil, expectations for a record harvest may expand further, according to consultant MD Commodities. Argentina may also collect a bigger-than-expected crop after beneficial rains, the Buenos Aires Grain Exchange said on Thursday.

SOY/GRAINS: Soybeans Head for Biggest Monthly Slump Since 2018

Drivers
At Least Two-Thirds of China Economy to Stay Shut Next Week More than a dozen Chinese provinces announced an extension of the current Lunar New Year holiday by more than a week The U.K. confirmed its first two cases, while the U.S. and Japan advised citizens to avoid traveling to China Wilmar Says Hubei Unlikely to Run Out of Animal Feed Potential shortage was caused by uncertainty over whether transportation of feed supplies and raw materials will be interrupted AGS SURVEY: Traders Turn Neutral on Soy on Coronavirus Jitters Brazil Soybean Output May Reach Record 128m Tons The 2019-20 harvest, estimated at 126m tons, has the potential to reach 127m to 128m tons: MD Commodities Argentina’s Soybean Production Prospects Bolstered by Rain

Drivers

At Least Two-Thirds of China Economy to Stay Shut Next Week
- More than a dozen Chinese provinces announced an extension of the current Lunar New Year holiday by more than a week
- The U.K. confirmed its first two cases, while the U.S. and Japan advised citizens to avoid traveling to China
Wilmar Says Hubei Unlikely to Run Out of Animal Feed
- Potential shortage was caused by uncertainty over whether transportation of feed supplies and raw materials will be interrupted
AGS SURVEY: Traders Turn Neutral on Soy on Coronavirus Jitters
Brazil Soybean Output May Reach Record 128m Tons
- The 2019-20 harvest, estimated at 126m tons, has the potential to reach 127m to 128m tons: MD Commodities
Argentina’s Soybean Production Prospects Bolstered by Rain

Futures
Chicago soybeans for March were little changed at $8.77 a bushel Most-active futures are near the lowest since early December Chicago wheat for March was steady at at $5.59 3/4 a bushel In Paris, March wheat declined 0.4% to EU191.50/ton Futures fell even as Egypt bought French wheat in a tender on Thursday The Russian export estimate has been cut by almost 1m tons by SovEcon Chicago corn for March added 0.3% to $3.80 3/4 a bushel

Futures

Chicago soybeans for March were little changed at $8.77 a bushel
- Most-active futures are near the lowest since early December
Chicago wheat for March was steady at at $5.59 3/4 a bushel
In Paris, March wheat declined 0.4% to EU191.50/ton
- Futures fell even as Egypt bought French wheat in a tender on Thursday
- The Russian export estimate has been cut by almost 1m tons by SovEcon
Chicago corn for March added 0.3% to $3.80 3/4 a bushel

To contact the reporters on this story: James Poole in Singapore at jpoole4@bloomberg.net;Anatoly Medetsky in Moscow at amedetsky@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Nicholas Larkin