Chicago | Reuters — Chicago Board of Trade corn and soybean futures rose on Thursday, with end users stepping in to buy the market one day after prices posted sharp declines.
“On hard breaks, the end users really need the supply,” said Don Roose, president of U.S. Commodities in West Des Moines, Iowa. “They are running real businesses that use corn and soybean meal and beans every day. You can’t run out.”
Wheat futures fell on technical selling.
Chart support levels also helped corn and soy prices to steady after a steep fall since Tuesday’s monthly crop forecasts from the U.S. Department of Agriculture (USDA) disappointed traders with a smaller-than-expected reduction in U.S. corn stocks following massive recent export sales to China.
CBOT March corn settled up 6-1/2 cents at $5.41 a bushel and CBOT March soybeans gained 13-1/2 cents to $13.67-1/2 a bushel (all figures US$).
Traders shrugged off forecasts for big crops in South America.
Abundant rains in recent weeks in Argentina have lifted forecasts for soybean and corn harvests, according to the Rosario grains exchange.
Soybean production in Brazil will reach a record 133.817 million tonnes, the country’s agricultural statistics agency, Conab, predicted. It pegged Brazil’s total corn crop at 105.482 million tonnes, 3.169 million tonnes above its January forecast.
CBOT March soft red winter wheat futures were down two cents at $6.33-1/2 a bushel.
Declines in wheat were kept in check by concerns about crop damage related to a cold snap in key U.S. production areas.
“Snow cover is lacking across the central and southern Plains and temperatures are expected to drop well below winterkill levels by the weekend,” forecaster Maxar said in a note to clients.
USDA on Thursday morning reported weekly export sales of wheat at 635,400 tonnes, corn at 1.461 million tonnes and soybeans at 983,200 tonnes.
— Reporting for Reuters by Mark Weinraub in Chicago; additional reporting by Naveen Thukral in Singapore and Gus Trompiz in Paris.