Soybeans dip as market weighs tighter US stocks against broader supply outlook

Chicago soybean futures eased 0.3% to $12.24-1/4 a bushel by 0505 GMT on Wednesday, after gaining 3.4% a day earlier. Business Recorder reported that traders were assessing a US Department of Agriculture outlook for lower-than-expected US production and end-season stocks, alongside stronger domestic and export demand estimates.

The supply picture elsewhere continues to weigh on prices: Brazil’s planting is progressing well, while larger expected harvests in Australia and Argentina add to wheat availability. Lower crude oil and palm oil prices have also pressured soybeans used in biofuel, while corn slipped 0.2% and wheat advanced 0.2%. The report noted that possible changes in Black Sea crop flows remain another factor for traders.