CHICAGO: Chicago Board of Trade soybean futures rose for a third consecutive session on Wednesday, hitting their highest in nearly a month on expectations demand for U.S. supplies will remain strong due to harvest shortfalls in South America, traders said.
The crop woes in Argentina and Brazil also lent support to the corn market while wheat eased as traders assessed the long-term implications of Russia’s invasion of Ukraine.
Soybeans also were benefiting from strength in the cash market, where dealers along Midwest rivers were boosting their bids for the oilseed as they tried to find supplies to ship to exporters at the U.S. Gulf.
“So far, the Brazilians have been able to supply soybeans to China, but we expect that they are on the verge of running out of supplies and then the demand for U.S. soybeans is going to get interesting,” Tomm Pfitzenmaier, an analyst for Summit Commodity Brokerage in Iowa, said in a note to clients.
At 11:31 a.m. CDT (1631 GMT), CBOT May soybeans SK2 were up 24 cents at $17.20-1/2 a bushel. Prices peaked at $17.36-1/2, the highest for the most-active contract Sv1 since Feb. 24.
A crude oil rally also lent support to the soy complex.
CBOT May corn gained 6-1/2 cents at $7.59-1/2 a bushel after topping out at the highest since March 7.
CBOT May wheat shed 13-1/2 cents to $11.04-3/4 a bushel. Traders were still waiting for signs U.S. exporters were winning some of the wheat business that typically goes to Russia or Ukraine. “We are in for a long war between Russia and Ukraine,” said one Singapore-based trader.
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