Soybeans around 2-year highs on strong Chinese demand
- Soybeans rise to highest since June 2018 on Chinese demand.
- Corn firm ahead of USDA crop forecasts.
- Wheat drops, Australia ups wheat harvest forecast.
HAMBURG: Chicago soybean futures hit their highest in around two years on Tuesday following strong demand from top importer China.
Wheat fell as larger harvests in Australia signalled greater export competition to US supplies. Corn rose ahead of crop estimates from the US Department of Agriculture (USDA) on Friday.
Chicago Board of Trade most-active soybeans rose 0.1% to $9.69-3/4 a bushel at 1058 GMT, after hitting their highest since June 2018 at $9.77 a bushel earlier on Tuesday.
Wheat fell 0.8% to $5.45-1/2 a bushel. Corn rose 0.4% to $3.59-1/2 a bushel.
US markets were closed for a holiday on Monday. A series of hefty US soybean sales to China were reported last week.
"Soybeans remain strong on expectations the US will make more sales to China possibly in coming days," said Matt Ammermann, StoneX commodity risk manager. "China has basically cleaned out the soybean supplies available in Brazil and as hoped seems to be increasingly turning to the United States for soybeans.
"Soybeans have now risen for 11 straight sessions but the market may need confirmation this week of more sales from the US to China to maintain the momentum. Cold temperatures which are expected to continue in parts of the US also support soybeans."
Dealers await the USDA's monthly supply and demand forecasts on Friday, after US crops suffered from dryness and storms.
"Corn is firm ahead of the USDA report on Friday which is expected to confirm a fall in estimates for the US crop," Ammermann said. "Recent private forecasts of US crop yields have also been cut after the dryness and storms in US corn belts. The question is whether the USDA will cut its US corn crop estimates enough to satisfy the market.
"Wheat is pulling back from the 5-year highs reached last week with more attention on fundamentals. Export competition for US supplies remains heated, with the new forecast of a good crop from Australia showing that another competitor to the US will have larger supplies for export markets."
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