Soybeans, corn rebound on higher oil prices; US harvest caps upside

SINGAPORE: Chicago soybeans and corn firmed on Thursday, recouping some of the previous session’s losses as higher oil prices and positioning ahead of a monthly agricultural supply-demand report underpinned prices.

Wheat eased, though a lack of supplies from the Black Sea region amid the Russia-Ukraine war limited losses.

“This is typical time of the year when we see pressure on prices because of the US harvest,” said one trader in Singapore.

“There is some support today because of higher oil prices.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.2% to $13.00 a bushel, as of 0252 GMT, and corn gained 0.2% at $5.03 a bushel.

Wheat fell 0.2% to $6.85-1/4 a bushel. Oil prices rose on persistent worries about supply from the key Middle East producing region amid an increase in attacks on shipping in the Gulf and the Strait of Hormuz. Oil prices can drive grain markets due to the growing use of agricultural products in biofuels.

The US harvest is gathering pace across the Midwest under mostly clear skies, expanding fieldwork after heavy late-September rains stalled progress.

The market is awaiting US Department of Agriculture (USDA) reports on global supply-and-demand due on Friday.

The reports will include updates on US crops.

Analysts surveyed by Reuters on average expect the USDA to lower its estimate of the average US corn yield while leaving its soybean yield view unchanged.

Market players were also weighing ongoing war disruption to Black Sea trade against signs of rising Russian exports through alternative Baltic Sea routes.

Grain consultancy SovEcon said on Wednesday it had cut its forecast for Russia’s 2026 wheat crop to 87.5 million metric tons from 88.2 million tons seen earlier.