SINGAPORE/PARIS: Chicago soyabeans climbed more than 1.5% on Wednesday to their highest in nearly nine years, as shrinking global feed grain supplies and positioning ahead of a key US supply-demand report due later in the day underpinned prices.
Wheat was flat while corn futures rose slightly, gaining for a second straight session.
“The bullish trend remains in place and tightening global supplies are in focus ahead of the USDA (US Department of Agriculture) report,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.
“No one wants to be caught short before the USDA report.”
The most-active soyabean contract on the Chicago Board of Trade (CBOT) rose 1.6% to $16.40-1/2 a bushel, as of 1030 GMT, after hitting its highest since September 2012 at $16.53-1/4 a bushel in the session.
Wheat was unchanged at $7.41-3/4 a bushel and corn added 0.2% to $7.23-3/4 a bushel, not far from an eight-year high of $7.35-1/4 hit on Friday.
Tightening corn supplies should affect competing feedstuffs as well, including soyabean meal.
Traders await Wednesday’s World Agricultural Supply and Demand Estimates (WASDE) report, in which the USDA will give its first global outlook for 2021/22 and update its 2020/21 estimates.
Analysts surveyed by Reuters on average expected the USDA to lower its estimate of Brazil’s 2020/21 corn production to 103.5 million tonnes, from 109 million tonnes in April. Others fear the figure ultimately could fall below 100 million tonnes, curbing exportable supplies.
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