Soybeans Drop on Plentiful South American Supplies – Market Recap for May 28
Soybeans Drop on Plentiful South American Supplies
Soybean futures took a hit on Tuesday as plentiful supplies from South America drove prices lower. The weakening soybean meal prices, coupled with the availability of cheaper supplies from export competitors in South America, contributed to the drop in soybean futures.
Wheat futures, on the other hand, mostly continued to rise due to crop damage in major southern Russian wheat-growing regions caused by dry weather and bitter frosts. Corn also received some support from the rise in wheat prices, but it wasn’t enough to offset the pressure from favorable planting weather forecasts.
In terms of numbers, July corn fell 2¼¢ to close at $4.62½ a bushel, while Chicago July wheat added 3¢ to close at $7.00¼ per bushel. Kansas City July wheat saw a significant jump of 10¢, closing at $7.31¼ per bushel. Minneapolis July wheat added 4¾¢ and closed at $7.57½ per bushel. July soybeans fell 18½¢ to close at $12.29½ per bushel, while July soybean meal dropped $9.90 to close at $376.60 per ton. July soybean oil, however, advanced 0.57¢ to close at 45.52¢ a pound.
In the stock market, chip maker Nvidia saw another day of gains, helping to boost US stocks. The Dow Jones Industrial Average fell 216.73 points, the Standard & Poor’s 500 ticked up 1.32 points, and the Nasdaq Composite climbed 99.09 points.
US crude oil prices advanced, with the July West Texas Intermediate light, sweet crude future adding $2.11 to close at $79.83 per barrel. US gold prices also jumped higher, with the June contract closing at $2,356.50 per ounce.
Overall, the market saw a mix of ups and downs, with soybeans facing pressure from ample supplies in South America, while wheat and corn prices were influenced by weather conditions and planting forecasts. Investors will continue to monitor these factors closely in the coming days.
