Soybeans, corn edge higher ahead of USDA data

BEIJING: Chicago soybeans and corn edged higher on Thursday as traders adjusted positions ahead of key monthly crop reports from the US Department of Agriculture (USDA).

China imports record 12.14m tons of soybeans in August

Wheat futures were flat, after hitting a one-week high in the previous session amid signs of easing supply pressure from the Black Sea export region.

Fundamentals

• The most-active soybeans contract on the Chicago Board of Trade (CBOT) was up 0.1% at $10.02-1/2 a bushel, as of 0140 GMT, and corn also edged 0.1% higher to $4.05-1/4 a bushel.

• The wheat contract on the Chicago Board of Trade (CBOT) held its ground at $5.9 a bushel.

• Argentine farmers are seen opting for more soy this season as corn planting has been hit by dry weather and fears of disease carried by the leafhopper insect, the Rosario grains exchange said on Wednesday.

• The weather in Brazil, the world’s largest soybeans producer, will not likely normalize until October for soy planting, the local head of commodities trader Cargill said on Wednesday, signalling the likelihood of more dry conditions this month.

• Brazil asked the European Union not to implement regulations in its deforestation law at the end of the year as scheduled and asked for it to be revised to avoid hurting Brazilian exports.

• Energy production and agricultural exports out of the US Gulf of Mexico were partially disrupted ahead of Hurricane Francine’s landfall later in the day, tying up shipments of fuel, soybean and grains, according to official and operator reports.

• Ahead of USDA reports later in the day, analysts surveyed by Reuters expect the government to leave its US 2024 soybean yield forecast unchanged and slightly trim its corn yield estimate.

• Consultancy IKAR lowered its forecast for Russia’s wheat crop to 82.2 million metric tons from 83.8 million tons, citing adverse weather.

• Commodity funds were net buyers of Chicago Board of Trade soymeal, soybean and wheat futures contracts on Wednesday and net sellers of corn and soyoil futures, traders said.