Soybeans rise on firm vegoils, Argentina crop concerns; corn steady

MUMBAI: US soybean futures extended gains on Friday, tracking an upside in vegetable oils and crude oil prices, and as drought and government policies raised concerns over supplies from top exporter Argentina.

Wheat also rose as there was slim progress in peace talks between Russia and Ukraine, while corn was steady after rising on Thursday.

The upside in crude and vegetable oils is giving support to soybeans amid rising uncertainty over Argentina’s beans supply, said a Mumbai-based dealer with a global trading firm.

Argentina’s 2021/22 soybean, corn and sunflower harvest forecasts could be cut further, the Buenos Aires grains exchange said on Thursday, citing lower-than-expected yields due to adverse weather conditions that have hit crops this year.

CBOT soybeans may fall to $16.22-1/2

The entity, which slashed corn and soy production estimates earlier in the year due to drought, currently forecasts a soybean harvest of 42 million tonnes, corn at 51 million tonnes and the smaller sunflower harvest at 3.3 million tonnes.

Oil prices extended their rally on Friday at the end of a third volatile week of trade, as slim progress in Russia-Ukraine peace talks raised the spectre of tighter sanctions and a prolonged disruption to oil supply.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Soybeans rose 0.9% to $16.83-1/2 a bushel, as of 0411 GMT, after rising 1.2% in the previous session.

Wheat was up 0.66% at $11.05-1/4 a bushel, while corn was down 0.1% to $7.53-3/4 a bushel.

Markets are closely watching the talks to end the war in Ukraine, which Russia calls “a special military operation”.

A fourth straight day of talks between Russian and Ukrainian negotiators took place by videolink, but the Kremlin said an agreement had yet to be reached.

France’s Strategie Grains said the war could remove about 11 million tonnes of Black Sea wheat exports and some 12 million tonnes of corn exports from the world market in 2021/22.

The US Department of Agriculture reported US corn export sales in the week to March 10 at just over 2 million tonnes, topping trade expectations.

Argentina, the world’s top exporter of processed soy products, is weighing raising taxes on soybean oil and meal exports as part of a plan to tamp down sky-high inflation.