BLBG:Soybeans Drop on Signs Brazil Is Gaining Market Share From U.S.
Soybeans declined from the highest close in more than four weeks on signs that demand for the U.S. crop may be waning as farmers accelerate harvesting in Brazil, poised to be the largest exporter this year.
The oilseed for May delivery lost as much as 0.7 percent to $14.69 a bushel on the Chicago Board of Trade and was at $14.72 at 1:49 p.m. in Singapore. The trading volume was 33 percent less than the 100-day average for that time of day. Futures closed at $14.795 yesterday, the highest settlement since Feb. 7.
Soybeans inspected before shipment at U.S. ports fell 58 percent to 17 million bushels in the week to March 7, from a week earlier, according to the U.S. Department of Agriculture. In Brazil, farmers have collected about 48 percent of the crop as of March 8, compared with 46 percent a year earlier, researcher Safras & Mercado said in a report yesterday.
The drop in U.S. export inspections is “a sign that Brazilian beans may be starting to extract market share,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a report today.
Corn for May delivery was little changed at $7.1175 a bushel in Chicago. That put soybeans at 2.07 times the cost of corn, compared with an average of 2.43 in the past decade. The two crops compete for acreage. Wheat for May delivery was little changed at $7.005 a bushel.
To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
