CANBERRA: Chicago soybean futures recovered on Monday towards Friday’s five-week high, helped by the US Department of Agriculture (USDA) cutting its estimate of US soy production and an ongoing rally in oilseed and vegetable oil prices.
Soybeans, corn and wheat fall on better supply outlook
Corn futures dipped after hitting their highest since June on Friday after the USDA downgraded of the US crop. Wheat also fell after growing conditions in the US, Black Sea and Europe improved.
Fundamentals
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The most-active soybean contract on the Chicago Board of Trade was up 0.8% at $10.38 a bushel by 0201 GMT after rising 3.7% last week and touching $10.44 on Friday.
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CBOT corn slipped 0.2% to $4.30-1/4 a bushel after reaching $4.35 on Friday, while wheat fell 1.3% to $5.65-1/4 a bushel.
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US farmers grew less soybeans and corn this year than previously expected after a dry spell hurt crops, the USDA said on Friday.
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However, supplies remain hefty, with farmers estimated to have produced the second-biggest US soy harvest in history and the third-largest corn harvest, and end-of-season supplies of both crops are still projected to reach five-year highs, the USDA said.
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Soybeans also took strength from a rally in soyoil prices. CBOT December soyoil hit a seven-month high on Monday amid rising Malaysian palm oil and European canola prices and expectations that US President-elect Donald Trump could impose tariffs on imported biofuel feedstocks.
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In wheat, drier weather has sped up sowing in waterlogged western Europe, while rain over the US Plains and Black Sea cropping areas has helped ease dry conditions that were damaging crops.
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Speculators trimmed their net short positions in CBOT soybeans, corn and wheat in the week to Nov. 5, regulatory data released on Friday showed, and funds bought more soybeans and corn on Friday while selling wheat, traders said.
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