Thursday, 20 September 2012 09:29
SYDNEY: US soybeans rose on Thursday, extending gains from the previous session as bargain hunters emerged after sharp losses at the beginning of the week on better-than-expected soybean yield forecasts and a fast harvest pace.
Corn eased, however, giving back some of the gains from Wednesday.
Chicago Board Of Trade November soybeans rose 0.24 percent to $16.73-1/2 a bushel, having firmed 1.8 percent on Wednesday, rebounding from a near 6 percent fall in the previous two days.
December corn fell 0.36 percent to $7.53-3/4, having gained 2.2 percent in the previous session.
December wheat was little changed at $8.81-3/4 a bushel, having closed up 2.1 percent on Wednesday.
A Reuters poll of 14 analysts on Tuesday put the soybean yield at 35.85 bushels per acre, up 1.6 percent from the government's latest forecast of 35.3 bushels on Sept. 12.
Hamburg-based Oil World analyst Thomas Mielke said China's government may be forced to reduce soybean stocks by about 4 million to 5 million tonnes by February.
South Korea is to purchase a combined 500,000 tonnes of reserves of corn, wheat and soybeans for feed in 2014, or 5 percent of the country's annual demand, to secure supplies in the event of a further rise in prices, the agriculture ministry said on Wednesday.
Iraq's state grains board purchased 150,000 tonnes of Russian-origin wheat in an international tender to buy at least 50,000 tonnes that closed this week, European traders said on Wednesday.
Taiwan's Breakfast Soybean Procurement Association (BSPA) has issued an international tender to purchase up to 60,000 tonnes of soybeans sourced from the United States or South America, European traders said on Wednesday. Bidding deadline is Thursday, Sept. 20.
The Japanese yen gained across the board on Wednesday, recovering from earlier losses incurred after the Bank of Japan eased monetary policy more than expected, as investors saw the announcement as less aggressive than plans by other central banks.
Oil prices slumped on Wednesday as Saudi efforts to tame prices and a massive rise in US crude inventories after Hurricane Isaac fuelled a third day of heavy fund liquidation, one of the biggest sell-offs in more than a year.
US stocks rose on Wednesday as investors dipped back into the market after the recent pullback from a rally that lifted the S&P 500 to just shy of five-year highs.
Copyright Reuters, 2012