CHICAGO: US soyabean futures scaled a four-year high on Tuesday as soaring demand from domestic users and exporters stoked concerns that already-thin supplies are likely to tighten further.
Corn futures climbed for a third straight session on strong demand and smaller global supplies, while wheat dipped after two days of gains.
“Soyabeans are leading the complex today with hopes of more US export sales, especially to China, and signs of robust US domestic soyabean crushing demand,” said Matt Ammermann, StoneX commodity risk manager.
“This is against the background of tighter supplies after the forecast of smaller US soyabean stocks from the USDA last week,” he said.
The National Oilseed Processors Association on Monday reported a record-large US soyabean crush in October that topped all trade estimates.
Meanwhile, lingering dry weather in parts of South America, where dry conditions had stalled soyabean planting recently, has increased concerns about the size and timing of the next harvest. A later harvest would likely benefit US exports.
Chicago Board of Trade January soyabean futures were up 16-1/2 cents at $11.70 a bushel at 12:33 p.m. CST (1833 GMT) after peaking at $11.78-1/4, the highest for a most-active contract since June 13, 2016. All soyabean contracts posted new life-of-contract highs.
CBOT December corn gained 3-3/4 cents to $4.20 a bushel and CBOT December wheat fell 4 cents to $5.94 a bushel. Much of the market’s focus remains on exports, particularly to China, which has slowed purchases from the brisk pace earlier in the autumn. China is believed to still need US soyabeans and corn before the next South American harvest arrives.
The US Department of Agriculture (USDA) on Tuesday said private exporters sold 195,000 tonnes of US corn to Mexico. South Korea also continues to buy imported corn.
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