HAMBURG/SYDNEY: US soybeans rose on Wednesday, rebounding on buying interest a day after nearing a one-month low, while wheat and corn drifted down in quieter pre-Christmas markets.
"Soybeans are seeing a rebound on buying interest after falling to test the $10 a bushel level on Tuesday," said Matt Ammermann, commodity risk manager and vice president Eastern Europe/Black Sea Region for INTL FCStone.
"Wheat is being weakened by strong competition in export markets for US supplies and easing concern about cold weather in US grain belts. Corn is seeing some selling but remains supported in its ranges."
Most active January Chicago Board of Trade January soybeans rose 0.3 percent to $10.08-3/4 a bushel at 1208 GMT after hitting a low since Nov. 21 at $10.04 a bushel on Tuesday.
Most active March wheat fell 0.3 percent, still around the two-week lows approached on Tuesday but holding above the closely-watched $4 level at $4.01-3/4 a bushel. Most active March corn fell 0.07 percent to $3.50 a bushel.
US soybeans fell on Tuesday as crop prospects in South America were improved by forecasts of rain in Argentina, easing worries about potential crop losses. Brighter prospects in Argentina coincide with expectations of a record harvest in fellow exporter Brazil.
"I think soybeans are seeing support around the $10 to $10.10 price point," Ammermann said. "Despite rain forecasts in Argentina, the outlook there in January is still looking rather dry at a critical time for soybean crop development in South America."
"China continues to show strong demand for US soybeans which is likely to keep US exports at a brisk level."
Wheat prices remain burdened by forecasts of huge global inventories.
"Export competition for US wheat in export markets remains heated, with Egypt on Tuesday buying from Russia, Argentina and Romania and not even getting offers for US wheat in a tender," Ammermann said. "Argentina is offering very cheap wheat prices in export markets although the export supplies are somewhat limited."
"Warmer temperatures are also expected in the US following concern about cold weather hitting US wheat."
Markets were also starting to quieten down as participants took a risk-avoidance stance ahead of the Christmas weekend.
"Corn is weaker but I would not view this as a break downwards," Ammermann said. "US export prospects remain positive and ethanol profit margins are still good in the United States which is likely to maintain firm demand for US supplies."
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