Monday, 07 January 2013 10:19
SINGAPORE: US soybeans rose almost 1 percent on Monday as bargain hunting lifted the market off a six-week low struck in the last session on expectations of near-record production in South America and poor demand.
Corn and wheat gained around half a percent each after dropping to their lowest in six months, but trading in agricultural commodities is expected to be cautious ahead a key US Department of Agriculture report on Friday.
Investors in the soybean market are keeping a close watch on moves by buyers in China, the world's top importer, which has cancelled US cargoes in the last few week on an improved supply outlook in rival exporter Brazil.
Last week, the US Department of Agriculture said China had cancelled orders for 315,000 tonnes of US soybeans. It gave no reason for the cancellations, which follow China's scrapping of purchases totaling 840,000 tonnes in the week of December 16.
"We have seen a fair bit of liquidation in beans and now there is some end-user demand which is resulting in a bounce," said Victor Thianpiriya, an agricultural strategist at ANZ in Singapore. "But it is little bit cautious before the USDA report."
Chicago Board Of Trade March soybeans rose 0.9 percent to $13.79-1/4 a bushel by 0340 GMT, after sliding to $13.56 a bushel on Friday, their lowest since mid-November.
On the technical front, CBOT March soybeans are expected to revisit their January 4 low of $13.56 per bushel as a downward wave c has not ended, according to Reuters technical analyst Wang Tao.
This wave started at the January 2 high of $14.35 and may eventually travel to $13.31-1/2, its 100 percent Fibonacci projection level.
Center>Copyright Reuters, 2013