SINGAPORE: Chicago soybean futures rose further on Wednesday, with prices climbing to their highest in more than a week on support from short-covering, although expectations of record South American supplies limited the gains.
Wheat rose after closing almost unchanged on Tuesday, while corn ticked higher.
“Managed funds are covering short positions, which is supporting soybean prices,” said one trader in Singapore.
“On the fundamental front, the market is well supplied with South American harvest likely to gain momentum.”
Commodity funds were net buyers of CBOT soybean, soymeal, soyoil, corn and wheat futures contracts on Tuesday, traders said.
The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.2% to $12.41-1/4 a bushel, as of 0253 GMT, after climbing earlier in the session to its highest since Jan. 12 at $12.42-1/4 a bushel.
Wheat rose 0.7% to $6.00-3/4 a bushel and corn gained 0.2% at $4.47-1/2 a bushel.
Gains in the soybean market were curbed by expectations for a large South American harvest.
While analysts have cut forecasts for Brazil’s soybean crop due to drought late last year, improved rainfall could limit the losses.
Argentina is on course for a bumper harvest this year. For corn, attention was turning to planting for Brazil’s second annual crop.
Forecasters expect lower production from Brazil’s second corn crop, reflecting a smaller planted area.
Doubts over Chinese demand are also providing headwinds to the markets, with Brazilian exports posing stiff competition to US soybeans and corn.
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