Friday, 23 August 2013 17:42
HAMBURG: US soybeans and corn rose on Friday, rebounding after big losses on Thursday sparked renewed buying interest, with continuing US crop concerns also supporting, traders and analysts said.
"Soybeans and corn are being supported by some purchasing today as the sharp fall on Thursday is creating some bargain-buying interest," said Arnaud Saulais of Starsupply Commodity Brokers. "We are in a weather market and there are sharp reactions each day to the weather forecasts in the US and also to the results of the crop inspection tour in the United States."
Chicago new crop November soybean futures fell 1 percent on Thursday and corn slumped nearly 4 percent as better-than-expected rains in the northern US crop belt eased fears of late-season crop damage.
"There is also concern about forecasts of hot weather in the United States next week which are also being priced in today," Saulais said. "Wheat is being supported by the strength in soybeans and corn, but is also facing weakness because of the perception that big harvests are being gathered in several regions including Europe."
Chicago Board of Trade November soybeans rose 0.6 percent to $12.94-3/4 a bushel by 1106 GMT, having closed down 1.3 percent on Thursday when wet weather eased some fears over the potential crop for both beans and corn.
Chicago December corn rose 0.7 percent to $4.67-3/4 a bushel, rebounding from losses of 3.9 percent on Thursday, the biggest daily slide for the contract in nearly two months.
September wheat rose 0.4 percent to $6.33 a bushel, having closed down 1.3 percent on Thursday. Meteorologists had reported better-than-expected rains on Thursday across the US Midwest grain belt.
"Corn and soybeans are experiencing a rebound from yesterday's dramatic decline, which in my opinion was an overreaction," said Joyce Liu, investment analyst at Phillip Futures.
"Traders sold down on the grains because of the rain relief, but it is nowhere near sufficient to change the outlook for the grains. We need more rains and more moderate temperatures," Liu added.
Analysts said soybeans drew support from disappointing findings from the Pro Farmer Midwest Crop Tour, a group of experts visiting key US grain and soybean production regions and giving immediate impressions of crop prospects.
The Pro Farmer Tour pegged the average number of soybean pods in top producer Iowa at 927 pods, down from the tour's count of 1,000 pods last year and a three-year average of 1,190 pods.
The weak findings follow similar earlier findings of Pro Farmer in Illinois.
Analysts said the tour's findings continue to add support to the oilseed market, which has firmed nearly 10 percent in the past two weeks on the back of concerns over dry weather.
But the tour findings capped the rebound in corn, traders said.
The tour projected the average corn yield in Iowa at 171.9 bushels per acre, up from a drought-reduced 137.3 bpa last year and above the three-year average of 157.1 bpa for the top.Copyright Reuters, 2013