SINGAPORE: Chicago soybeans edged higher on Monday, as the market took a breather after last week’s losses, which pushed prices to their weakest since late October on demand uncertainty from top importer China.
Wheat gained more ground on bargain-buying, although ample global supplies are likely to keep a lid on prices. “Chinese buying has largely been driven by the trade agreement between US and China,” said one Singapore-based trader.
“China’s demand for imported beans is limited as there are ample supplies in the domestic market.” The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.3 percent to USD10.62-3/4 a bushel by 0322 GMT, having hit its lowest since October 27 on Friday. Wheat added 0.4percent to USD5.11-3/4 per bushel, and corn gained 0.2 percent to USD4.44-3/4 a bushel.
Uncertainty over when China may meet a target of 12 million metric tons in US soybean purchases under a trade truce between Beijing and Washington has dampened the market, particularly in the run-up to what is expected to be another bumper Brazilian harvest in early 2026. China imported no soybeans from the US for a third consecutive month in November, as buyers turned to South American supplies amid fears of a shortfall if the trade war dragged on.
Following the truce in October, China has stepped up purchases of US cargoes, with traders saying that more than 7 million tons have been purchased since then.
On Friday morning, exporters sold 134,000 tons of US soybeans to China, the US Department of Agriculture said in a daily reporting system. Large wheat harvests in Argentina and Australia are pouring new supply onto the global market. Early prospects for next year’s harvests appear favourable, with top exporter Russia projecting a bumper crop of 90 million tons, officials said last week. Ukrainian farmers had threshed about 56.6 million tons of grain from 93.5percent of the sown area, as of December 18, the economy ministry said on Friday. It gave no comparative data.
Large speculators increased their net short position in CBOT corn futures in the week to December 9, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and cut their net long position in soybeans.
Comments
Comments are closed for this article.