Soybeans rise on improving US exports; wheat lifts
- Soybeans to 3-week high after China bought more US beans
- Wheat recovers from two-day slide
- Corn ticks lower (New throughout, changes byline, previous
CHICAGO: Chicago soybean futures climbed on Wednesday to a three-week high as fresh export demand from China, the world's top importer, continued to support prices.
Wheat prices bounced after a two-day slide, with a softer US dollar lending support, while corn inched lower amid favorable US crop prospects.
Chicago Board Of Trade July soybeans were up 5-1/2 cents at $8.56 a bushel by 12:30 p.m.(1730 GMT), after reaching a three-week high of $8.58.
CBOT July corn eased 3/4 cent to $3.23-1/2 a bushel while July wheat rose 3-3/4 cents to $5.11-3/4 a bushel. The US Department of Agriculture confirmed sales of 186,000 tonnes of US soybeans to unknown destinations, which analysts said likely meant China. The sale's destination was initially listed by USDA as China before the agency issued a correction.
A spate of US soy sales this week has eased concerns about export demand after Beijing reportedly told importers to halt purchases following a dispute over a new Chinese security law for Hong Kong.
Recent currency moves have worked in favor of US soy, with Brazil's real currency recovering from a prolonged slide while the dollar has softened, making US products more competitive.
"The value of the US dollar is playing into the Chinese trade plan, and now that the dollar is coming down, we're seeing them act as they said they would," said Dan Hussey, senior market strategist for Zaner Group.
Corn futures eased on good weather in the Midwest crop belt, while demand for corn-based ethanol remained lethargic. Ethanol consumption missed analysts' predictions despite five weeks of increased production and a decrease in stocks, analysts said.
The US Energy Information Administration said production of corn-based ethanol increased by 41,000 barrels per day in the latest week, while ethanol stocks fell.
"The improvement in ethanol consumption fell short of expectations. ... But it's still going in the right direction," said Terry Reilly, senior analyst with Futures International.
Comments
Comments are closed.