Chicago | Reuters –– U.S. soybean futures rose 1.3 per cent on Monday, following a sharp rally in soyoil that stemmed from talk of rising demand on the export market.
“I’ve heard some talk that China has an increased appetite for (soy)oil, said Bill Gentry, broker at Risk Management Associates. “That has given some value add to (soybeans).”
Corn and wheat futures edged lower, pressured by a bearish fundamental picture for both grains but a round of bargain buying and short covering lent support to both commodities and kept the losses in check.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Forecasts for rain across the U.S. Plains this week, arriving just in time to shepherd the hard red winter wheat crop through its last critical phase of development, were weighing on wheat prices.
Corn was anchored by expectations that a U.S. Department of Agriculture report on Monday afternoon will show that farmers seeded huge chunks of their acreage in the past week. Additionally, rainfall around the Midwest in recent days was seen as beneficial to the newly seeded crop.
“Fieldwork has been mostly shut down this weekend as rains spread throughout the Midwest, but the trade expects big-time corn planting numbers to be released this afternoon,” Matt Zeller, director of market information at INTL FCStone, said in a note to clients. “All eyes will be on the Crop Progress report with around a 50 per cent number anticipated.”
The expected pace of corn seeding added further support to soybeans as a quick planting of the grain means that less acreage will be switched to the oilseed.
Chicago Board of Trade soybeans for July delivery settled up 11-1/2 cents at $9.76-1/4 a bushel (all figures US$). CBOT July soyoil futures gained 1.05 cents, to 32.63 cents a bushel.
Buying in soyoil accelerated after the July contract broke through technical resistance at its 100-day moving average. Soybeans closed above the July contract’s 30-day and 40-day moving averages.
CBOT July corn was down 1-3/4 cents at $3.61-1/4 a bushel. The front-month contract hit its lowest since Oct. 27 during the overnight trading session.
CBOT July wheat was 1-1/4 cents lower at $4.72-3/4 a bushel.
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Sybille de La Hamaide in Paris and Naveen Thukral in Singapore.
