PARIS/SINGAPORE: Chicago Board of Trade soyabean futures jumped 1.8% on Tuesday, surging above $16 a bushel for the first time since September 2012 as traders focused on prospects for tight supplies until late 2022.
Corn and wheat futures also posted sharp gains after a steep pullback a day earlier, as the market turned its attention to US government forecasts due Wednesday that are expected to show tightening grain stocks.
At 10:02 a.m. CDT (1502 GMT), Chicago Board of Trade July soyabean futures were up 30-1/2 cents at $16.18 a bushel. CBOT July corn futures were 15-1/2 cents higher at $7.27-1/4 a bushel and CBOT July soft red winter wheat was up 15-3/4 cents at $7.46-1/4 a bushel.
Market participants are now watching for Wednesday’s World Agricultural Supply and Demand Estimates (WASDE), in which the US Department of Agriculture (USDA) will give its first global outlook for 2021/22.
“The market is particularly nervous ahead of the first global USDA forecasts for 2021/22,” Commerzbank said, adding that Brazilian forecasting agency Conab will also update crop estimates on Wednesday.
Consultancy AgRural on Monday said it had cut its estimate for the country’s second corn crop in the Center South region owing to drought, adding to expectations that Brazilian corn output will be below last year’s.
The USDA said after Monday’s market close that US farmers had planted 67% of their intended corn acres as of Sunday, matching the average estimate in a Reuters poll of analysts.
The USDA rated 49% of the US winter wheat crop in good-to-excellent condition, up 1 point from the previous week. Analysts on average had expected no change.