SINGAPORE: Soybean and corn futures edged lower on Thursday as market participants took positions ahead of a key US supply-demand report amid forecasts of improved weather for crops in the Midwest.
Wheat rose, recouping some of the losses from the previous session on support from risks to supplies from Ukraine and Russia.
“US weather is looking good for crops and the market is waiting to see estimates from the US Department of Agriculture on corn and soybean yields,” said one Singapore-based trader.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.4% at $13.13-1/4 a bushel, as of 0320 GMT, and corn rose 0.3% to $4.95-3/4 a bushel.
Wheat climbed 1% to $6.41-1/4 a bushel. Traders are adjusting positions before the US Department of Agriculture issues a monthly crop report on Friday.
Analysts on average project the World Agricultural Supply and Demand Estimates (WASDE) will trim the forecast for US soybean and corn production.
The corn harvest could still be the second-largest on record, with weather conditions seen turning more favourable.
Corn, soybeans rise for second session on short covering; wheat falls
Argentina’s Rosario grains exchange on Wednesday issued an upbeat forecast for the South American country’s 2023/24 soybean and corn harvests.
The exchange predicted a 48 million metric ton harvest of soybeans, up from 20 million tons in the last season, while the corn harvest could stand at 56 million tons, up from 34 million tons expected for 2022/23.
Exporters sold 251,000 metric tons of US soy to China, the largest buyer of the oilseed, for delivery in 2023-24, the US Department of Agriculture said. Weekly export sales data is due on Thursday.
In other news, Egypt’s purchase of 235,000 metric tons of Russian wheat on Tuesday underscored the continued competitiveness of Russian supplies on the global market.
Commodity funds were net sellers of CBOT corn, wheat and soymeal futures contracts on Wednesday and net buyers of soybean and soyoil futures, traders said.
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