USDA supply outlook pushes soybeans to second session of gains

CANBERRA: US soybean futures rose for a second consecutive session on Monday after the US Department of Agriculture (USDA) projected that domestic supplies of the oilseed would remain tight into 2022, stoking concerns of global supply.

Corn rose 1% despite an improved production outlook in South America while wheat climbed more than 0.5%.

The most-active soybean futures on the Chicago Board of Trade were up 0.4% at $13.83 a bushel, as of 0421 GMT, after closing 0.2% higher in the previous session.

"Price gains, as of late, suggest the market is well-aware that supply is tight," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

US stockpiles of corn and soybeans are expected to increase only slightly by the end of the 2021/22 marketing year on Aug. 31, 2022, as strong demand was seen absorbing record-large harvests of the crops that will be planted this spring.

The gains were checked, analysts said, by a rapidly advancing harvest in South America.

The most-active wheat contract was up 0.7% at $6.59-3/4 a bushel after ending 1.5% lower in the previous session.

The most-active corn futures were up 1% at $5.48-3/4 a bushel after closing 1.4% lower in the previous session.

Analysts also noted an improving outlook for Brazil's crop this year.