SINGAPORE: Chicago soybeans inched higher on Tuesday, with bargain-buying supporting prices, although the upside in prices was limited by expectations of an all-time high crop in top exporter Brazil. Wheat and corn edged higher to recoup losses from the previous session.
The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.2% to $9.87-1/2 a bushel, as of 0418 GMT, after closing down in the previous session. Wheat rose 0.8% to $5.51-1/2 a bushel and corn gained 0.2% at $4.33-1/2 a bushel.
Benevolent weather and use of quality farm inputs such as seeds, fertilizers and chemicals will help Brazilian soybean growers reap an enormous crop in the 2024/25 season, according to agribusiness consultancies Celeres and StoneX on Monday.
The country’s output is likely to reach 170.8 million metric tons, almost 1 million tons more than in a previous forecast, Celeres said. StoneX said Brazil will reap 166.2 million tons this season.
Recent rains across Argentina’s agricultural heartland have brought much-needed moisture to the soil as the planting of corn and soybeans are underway, Rosario’s grains exchange reported on Monday.
The wheat market has been facing pressure from higher than expected output in Australia. Large speculators switched to a net short position in Chicago Board of Trade corn futures in the week to Nov. 26, regulatory data released on Monday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and increased their net short position in soybeans.
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