CHICAGO: Chicago soyabean futures climbed on Tuesday, led by rising soyabean oil as global edible oil supplies tighten.
Corn moved higher, weighing Brazil’s late planted second-crop against beneficial rains in Argentina, while wheat followed the complex higher, despite much-needed rainfall across the US Plains production belt.
The most-active soyabean futures contract on the Chicago Board of Trade gained 10 cents to $14.27-1/2 per bushel as of 12:14 p.m. CDT (1714 GMT).
CBOT corn added 2-1/2 cents to $5.51-1/2 per bushel, while CBOT wheat added 8-1/4 cents to $6.35-1/2 a bushel.
Overnight, CBOT May soyaoil reached 58.25 cents per pound, the highest for a most-active contract since 2012, supported by increased global demand for vegetable oil.
“People are using vegoil to cook with, and the demand is there, worldwide, as we come out of the pandemic,” said Chuck Shelby, president of Risk Management Commodities.
Renewable fuel targets under President Joe Biden’s new US administration were added support for soyaoil, as the policy was seen increasing demand for biodiesel that uses vegetable oils, analysts said.
Meanwhile, corn futures rose as traders eyed delays to Brazil’s second-crop corn planting, while recent purchases of US corn by China erode already tight supplies.
Traders are looking ahead to the US Department of Agriculture’s March 31 quarterly stocks and planting intentions reports, with anticipated increased corn acres pressuring deferred-month corn prices.
“We’re staring down a very large US corn acreage number,” said Terry Reilly, senior agriculture analyst at Futures International. “That puts a lot of corn into the market by the end of October, after harvest.”