Markets

Soybeans rebound on hopes of strong demand, corn near 2013 high

  • In Argentina, the Buenos Aires Grains Exchange on Thursday cut its 2020/21 corn crop forecast by 1 million tonnes to 46 million tonnes, citing lower-than-expected yields caused by dry weather.
Published February 8, 2021

SINGAPORE: Chicago soybean futures rose on Monday, gaining for three out of four sessions, boosted by expectations of strong demand led by top buyer China.

Corn edged close to a seven-and-a-half-year high, while wheat rose for a second session.

"Chinese demand is the big story in grains and oilseeds which has been supporting prices," said Phin Ziebell, agribusiness economist at National Australia Bank in Melbourne.

"There are no major worries about supplies, so the upside from current levels is limited."

The most-active soybean contract on the Chicago Board Of Trade (CBOT) rose 0.4% to $13.71-1/2 a bushel, as of 0254 GMT, after closing down 0.4% in the previous session.

Corn gained 0.4% at $5.50-1/2 a bushel. The market hit a June 2013 high of $5.58 a bushel last week. Wheat gained 0.6% at $6.45-1/4 a bushel, after ending higher by a similar amount on Friday.

Expected record Chinese imports of corn and soybeans in the coming seasons will continue to absorb US supplies and keep prices on an upward trend, Chicago-based consultancy AgResource Co said.

Market is eyeing the US Department of Agriculture (USDA) supply and demand report later this week, which is likely to confirm tightening stocks of soybeans and corn.

The USDA reported daily export sales of 101,600 tonnes for delivery to unknown destinations during the 2020/2021 marketing year.

Rain has slowed Brazil's soybean harvest and subsequent second corn crop planting, but forecasters still expect bumper crops.

In Argentina, the Buenos Aires Grains Exchange on Thursday cut its 2020/21 corn crop forecast by 1 million tonnes to 46 million tonnes, citing lower-than-expected yields caused by dry weather.

Large speculators cut their net long position in CBOT corn futures in the week to Feb. 2, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.

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