CHICAGO: US soyabean futures set their highest price in more than four years on Monday, rising for a sixth consecutive session on the back of strong Chinese demand. Corn futures retreated from a 14-month peak hit on Friday, while wheat tumbled after sharp gains in the previous session.
Traders are keeping a close eye on demand from China because Chinese importers have recently increased purchases of US agricultural products. The purchases help fulfil commitments made during an initial trade deal the two countries signed in January.
The US Department of Agriculture on Monday reported that exporters struck separate deals to sell 120,700 tonnes of US soyabeans to unknown buyers and 135,000 tonnes of US soyameal to the Philippines. Yet rains in Brazil, the world's top soyabean supplier, limited gains in soyabean futures, brokers said.
"It is going to take some South American weather problem or continued Chinese export demand to sustain the rally in the soyabean market," said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa. The most-active soyabean contract on the Chicago Board of Trade was up 5 cents at $10.88-3/4 a bushel by 1:14 p.m. CDT (1814 GMT), after hitting a session peak of $10.89-3/4 a bushel - the highest since July 2016.
Corn slipped 1/2-cent to $4.18-3/4 a bushel, having climbed to its highest since August 2019 on Friday. Wheat fell 10 cents to $6.22-3/4 a bushel at the CBOT, after jumping 1.6% in the previous session. Rain and snow in the US Plains eased worries about unfavorably dry planting conditions for wheat, traders said.
The USDA, in a weekly report due at 3 p.m. CDT on Monday, is expected to peg US winter wheat planting as 86% complete, up from 77% as of Oct. 18, according to a Reuters poll of analysts. USDA is expected to report the US corn harvest as 73% complete and the soyabean harvest as 86% complete.
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