CANBERRA: Chicago soybean futures edged higher on Tuesday as traders weighed hopes that President Donald Trump can revive US exports to China against expectations of plentiful supply underscored by rapid planting in Brazil.
Corn and wheat futures were dragged lower by ample supply.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.1percent at USD10.18-1/2 a bushel at 0345 GMT. Prices have been stuck near USD10 for the last year after declining from nearly USD18 in 2022.
China, the biggest soy importer, has shunned US beans amid a trade war with Washington, reducing US export demand and weighing on US prices. Bumper supply from South America has also kept prices low.
Trump said last week he would raise the issue of soybean exports with Chinese President Xi Jinping at an upcoming meeting. His administration is meanwhile set to announce a plan worth as much as USD15 billion to bail out US farmers.
The US soy harvest was 39percent complete by Sunday, according to analysts. Soybean planting in Brazil, the biggest producer, is proceeding at its second-fastest level on record, consultants AgRural said.
The strong pace of Brazilian seeding and forecasts for rain there have allayed concerns that a dry start to the season may curtail production, said Rabobank analyst Vitor Pistoia. “There is plenty of soy around,” he said.
Elsewhere, Ukraine has approved new documentation to accompany exports of rapeseed and soybeans that are exempt from a new duty, the government’s website said, after confusion about the levy halted shipments of oilseeds for the past month.
In other crops, CBOT corn was down 0.2 percent at USD4.21 a bushel and wheat was 0.3 percent lower at USD5.11-1/4 a bushel. Prices of both crops have slumped since 2022.
Wheat export prices in top exporter Russia rose last week amid sustained demand. Analysts expect exports to accelerate but remain significantly below last year’s pace.
Comments
Comments are closed for this article.