CHICAGO: Chicago Board of Trade soyabean futures ended firmer on Friday as optimism over negotiations to raise the US debt ceiling lifted a range of commodity and equity markets.
Technical buying and short covering helped boost soya futures ahead of the long U.S. holiday weekend, analysts said.
Traders also kept an eye on U.S. crop weather amid concerns about the threat of unfavourable dryness next month.
Soyabeans for July delivery rose 13-1/4 cents to settle at $13.37-1/4 a bushel. New-crop November soyabeans jumped 17-1/4 cents to end at $11.89-1/2 a bushel.
CBOT July soyameal futures advanced $5 to close at $402.20 a ton, reversing losses from Thursday. CBOT July soyaoil futures gained 0.3 cent to finish at 48.82 cents per lb and hit their highest price since May 16.
CORN SET FOR WEEKLY GAIN
PARIS/SINGAPORE: Chicago corn rose on
Friday to extend this week’s gains as dry weather forecast in the Midwest kept attention on early risks to this year’s US crop.
Soyabeans and wheat were also firm, similarly heading for a weekly rise as grain markets recovered from multi-month lows last week.
Along with weather risks, uncertainty over a Black Sea corridor from Ukraine and an easing in the dollar from a two-month high supported grains ahead of a three-day U.S. holiday weekend, traders and analysts said.
Forecasts showing a dry spell would continue into early June in part of the Midwest was creating initial doubt about this year’s US corn and soyabean harvests, which the US has projected at record highs.
“Cool, dry weather favours planting of the remaining corn and soyabean acreage, but lack of topsoil moisture is becoming more apparent,” Saxo Bank said in a note.
Tepid U.S. exports, underscored by weekly export data on Thursday, remained a curb on grain prices, however.
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.6% at $5.94 a bushel at 1049 GMT. CBOT wheat added 1.2% to $6.11-1/4 a bushel and soyabeans gained 0.9% at $13.36 a bushel.
Poor conditions for drought-affected US winter wheat, despite recent showers, as well as a dry spell in northern Europe lent support to the wheat market.
Renewed tensions over a Black Sea deal allowing grain shipments from Ukraine, after a last-minute extension last week, have also helped wheat prices recover.
Ukraine has accused Russia of effectively cutting the port of Pivdennyi out of the corridor deal. Russia, meanwhile, signalled on Thursday that if demands over its grain and fertilizer exports are not met it will not extend the deal beyond a July 17 deadline.
CBOT WHEAT FUTURES RISE
Chicago Board of Trade wheat futures finished higher on Friday on short covering and technical buying ahead of the three-day holiday weekend in the US, brokers said.
Optimism over negotiations to raise the US debt ceiling helped lift a range of commodity and equity markets. Exports of Ukraine grain have not yet fully resumed under a Black Sea deal that was recently extended.
The benchmark CBOT July soft red winter wheat contract rose 11-3/4 cents to end at $6.16 a bushel. KC hard red winter wheat for July delivery was up 1-1/4 cents at $8.19-1/4 a bushel. MGEX July spring wheat futures were up 12-1/2 cents at $8.18 a bushel. Markets will be closed on Monday for Memorial Day.
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