Forexpros – Soybean futures extended losses from the previous session on Monday, trading close to the lowest level in more than a year as a downbeat outlook for U.S. export demand and ample global supplies continued to weigh on prices.
On the Chicago Mercantile Exchange, soybean futures for January delivery traded at USD11.0138 a bushel during European morning trade, slumping 0.5%.
It earlier fell by as much as 0.62% to trade at a daily low of USD11.0088 a bushel. Prices fell to USD11.0000 a bushel on Friday, the lowest since October 8, 2010.
Soybean prices have lost nearly 9% in the past four weeks, as increasing competition for U.S. exports and an upbeat crop outlook in South America have been dampening sentiment on the grain in recent weeks.
In its monthly World Agricultural Supply and Demand Estimates report published Friday, the USDA reduced its forecast for U.S. soybean exports to 1.3 billion bushels for the current crop year, a 25-million-bushel drop from its November projection.
The downward revision reflected “the slow pace of shipments and outstanding sales through November, and strong export competition from South America.”
According to the report, Brazil was now expected to export 38.5 million metric tons of soybeans in the 2011-12 season, up from last month’s prediction of 38 million tons. Brazil is the world’s second largest soy exporter, trailing only the U.S.
The USDA said that U.S. ending stocks of the grain will rise to a five-year high of 230 million bushels, up from November’s estimate of 195 million bushels.
The agency also lowered its average soybean price forecast for 2012 to USD11.70 a bushel, compared to a previous estimate of USD12.60 a bushel.
Meanwhile, agricultural commodities continued to be affected by outside influences as investors remained uncertain over the progress made at Friday’s European Union summit.
EU leaders agreed to implement stricter budgetary rules across the euro zone and to provide EUR200 billion in loans to the International Monetary Fund to assist countries with debt problems.
However, investors remained jittery after the European Central Bank indicated that it had no plans to increase its bond purchasing program, capping its weekly bond purchases at EUR20 billion.
Elsewhere on the Chicago Mercantile Exchange, corn for March delivery edged 0.13% lower to trade at USD5.9263 a bushel, while wheat for March delivery dipped 0.3% to trade at USD5.9350 a bushel.
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