Soybeans stay firm on slow Brazil planting, strong US exports

PARIS/SINGAPORE: Chicago soybean futures ticked higher for a second session on Tuesday as a slow start to planting in Brazil and brisk US exports offset supply pressure from a fast-moving Midwest harvest.

Corn edged up after US Department of Agriculture (USDA) data showed the US harvest was less advanced than expected.

Wheat eased after a sharp rise on Monday fuelled by dry sowing conditions in Russia and the United States.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.7pc at $10-28-3/4 a bushel, as of 1001 GMT.

The USDA said on Monday weekly export inspections of soybeans totalled 1.667 million tonnes, topping market forecasts of 1.05 million to 1.55 million tonnes.

A lack of rain expected in the coming days should further delay Brazil's soybean planting and curb early supply for January, consulting firm AgRural said on Monday.

"If fewer soybeans were to reach the market from Brazil in January, this would prolong China's demand for US soybeans until the crop in Brazil increases significantly in February," Commerzbank said in a note.

The US soybean harvest was 38pc complete as of Sunday, the USDA said in a weekly crop progress report after the market close on Monday, ahead of the five-year average of 28pc and an average estimate of 36pc in a Reuters analyst poll.

CBOT corn added 0.3pc to $3.80-3/4 a bushel, while wheat ticked down 0.3pc to $5.82-3/4 a bushel.

The US corn crop was 25pc harvested, the USDA said, just ahead of the five-year average of 24pc but behind the average analyst estimate of 26pc.

The agency estimated that planting of winter wheat was 52pc complete, ahead of the five-year average of 47pc and the average analyst estimate of 50pc.

Market concern about northern hemisphere wheat sowing was also tempered by recent rain in Ukraine that has eased drought.