SINGAPORE: Chicago soybean prices firmed nearly 1% on Wednesday, trading close to their highest levels in two months, as adverse weather conditions in top exporter Brazil and strong Chinese demand underpinned the market.
Wheat edged higher, recouping some of previous session’s losses, although prices remained under pressure from improved US crop conditions.
“Brazilian soybean planting programme is running bit behind schedule due to erratic weather,” said one Singapore-based trader.
“At this stage, we are not too worried as there is still time.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.8% at $13.73-1/4 a bushel, as of 0418 GMT, not far from previous session’s highest since Sept. 6 at $13.80 a bushel.
Wheat gained 0.6% at $5.73-1/2 a bushel and corn edged 0.2% higher to $4.69-1/4 a bushel.
Brazil, the world’s top soybean supplier, saw torrential downpours in southern areas while arid conditions persisted to the north.
Weather forecasts for November do not show a significant change in overall conditions, with scattered rains in central-north areas and downpours in the south likely compromising Brazil’s 2024 soy yields and output.
However, it is early to determine whether soy will definitely be spoiled in the world’s biggest supplier of the oilseed.
On the demand front, China booked its largest single-day US soybean purchases in at least three months on Tuesday, traders said, offering a glimmer of hope for the most valuable US farm export after overseas sales of the 2023 harvest had fallen well behind the normal pace.
The US Department of Agriculture (USDA) rated 50% of the country’s winter wheat crop in good-to-excellent condition after trading ended on Monday, up three percentage points from the previous week.
It was the highest rating for this time of year since 2019.
Traders are waiting for the USDA to issue its November supply/demand and crop production data on Thursday.
Russian wheat export prices nudged a little higher last week, supported by slower exports from the Black Sea, in a calm market, analysts said.
The price of 12.5%-protein Russian wheat scheduled for free-on-board (FOB) delivery in December was $226 per metric ton last week, up from $224 in the previous week, the IKAR agriculture consultancy reported.
Commodity funds were net sellers of CBOT corn, soybean, soyoil and wheat futures contracts on Tuesday and net buyers of soymeal futures, traders said.
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