Chicago | Reuters – The Chicago Board of Trade soybean futures rose on Wednesday on improved US export demand and as the market rebounded from a one-month low set in the previous session, analysts said.
Corn and wheat futures declined.
According to the US Department of Agriculture, exporters sold 251,000 tons of US soybeans to China, the oilseeds’ biggest buyer, for delivery in 2023-2024. Weekly export sales data is expected on Thursday.
“The demand for fresh exports for new crops has been much better, which helps,” said Matt Wiegand, commodities broker at FuturesOne.
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Traders adjusted their positions ahead of the USDA issuing a monthly crop report on Friday. Analysts are on average expecting the World Agricultural Supply and Demand Estimates (WASDE) to lower forecast for US soybean and corn production.
The corn harvest could still be the second-biggest on record as weather conditions look set to turn more favourable.
“No one really wants to take a big position leading up to the report,” said Sherman Newlin, an Illinois farmer and analyst with Risk Management Commodities.
Most active soybean futures were up 2-1/2 cents at $13.08-1/2 after falling to their lowest price since June 30 on Tuesday (all figures in US dollars).
Corn was down 4 1/2 cents to close at 4.94 1/4 dollars a bushel, close to a three-week low set 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 strength in the soybean market,” said Tomm Pfitzenmaier, an analyst at Summit Commodity Brokerage in Iowa.
“The weather has certainly improved, with lower temperatures and extended rains forecast, but positioning and the evening ahead of Friday’s WASDE report could dominate trading for a couple of days.”
Furthermore, Egypt’s purchase of 235,000 tons of Russian wheat on Tuesday underscored the continued competitiveness of Russian supplies in the global market.
India, meanwhile, will release up to five million tons of wheat from its stockpiles. Dealers also pay attention to possible imports.
– Reporting for Reuters by Tom Polansek in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
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