(Bloomberg) -- Soybeans headed for a third straight week of losses, weighed down by expectations of high production as well as US farmers selling ahead of the new crop harvest.
Futures in Chicago were on track to close about 4% lower this week, near their weakest since 2020, as supply outpaces lackluster demand. Earlier in the week, the US Department of Agriculture increased its forecast for world soybean stocks by about 5% from the month prior to 134.3 million tons, beating the estimates of analysts surveyed by Bloomberg.
Expected soybean production in the US also rose by 3.5% from the month prior to 124.9 million tons, while Brazil is expected to produce 147.4 million tons, according to the country’s supply company, Conab.
Prices were also influenced by US farmers selling over the past few days, motivated by the need to make room for the upcoming crop yet to be harvested, according to Marex analyst Charlie Sernatinger.
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