Chicago | Reuters — Chicago Board of Trade soybean futures rose on Wednesday on improving U.S. export demand and as the market recovered from a one-month low reached in the previous session, analysts said.
Corn and wheat futures declined.
Exporters sold 251,000 metric tonnes of U.S. soy to China, the largest buyer of the oilseed, for delivery in 2023-24, the U.S. Department of Agriculture said. Weekly export sales data is due on Thursday.
“Fresh export demand for new crop has been a lot better, so that helps,” FuturesOne commodity broker Matt Wiegand said.
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Traders adjusted positions before USDA issues a monthly crop report on Friday. Analysts on average project the world agricultural supply and demand estimates (WASDE) will trim the forecast for U.S. soybean and corn production.
The corn harvest could still be the second-largest on record, with weather conditions seen turning more favourable.
“Nobody wants to really put on much of a position ahead of the report,” said Sherman Newlin, an Illinois farmer and analyst with Risk Management Commodities.
Most-active soybean futures settled up 2-1/2 cents at $13.08-1/2 after falling on Tuesday to the lowest price since June 30 (all figures US$).
Corn slipped 4-1/2 cents to end at $4.94-1/4 a bushel, hovering near a three-week low reached on Monday. Wheat fell 21-1/4 cents to $6.35 a bushel.
“Once again, the corn market is caught between weakness in the wheat market and the strength in the soybean market,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa.
“The weather has certainly improved with lower temperatures and widespread rainfall in the forecast, but positioning and evening up ahead of Friday’s WASDE report may dominate the trade for a couple of days.”
In other news, Egypt’s purchase of 235,000 metric tonnes of Russian wheat on Tuesday underscored the continued competitiveness of Russian supplies on the global market.
India, meanwhile, will release up to five million metric tonnes of wheat from stocks. Traders are also watching for potential imports.
— Reporting for Reuters by Tom Polansek in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
