BEIJING: Chicago soybean futures climbed on Tuesday, recouping losses from the previous session, as traders grappled with teetering broader commodity markets and rebounding gold prices.
Wheat and corn also traded higher. The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.2percent at USD10.62-3/4 a bushel, as of 0453 GMT. CBOT wheat was up 0.3percent at USD5.29-1/4 a bushel and corn rose 0.3 percent to USD4.27 a bushel. “Soybean and grain prices increases are related to the rebound in gold and silver prices.
Recently, a sharp drop in gold and silver led the broader commodities market to pull back,” a Shanghai-based analyst said, requesting anonymity.
Gold and silver rebounded more than 2percent on Tuesday after a sharp selloff that was triggered by the nomination of Kevin Warsh as the next Fed chair and higher margin requirements at CME Group. Commodity markets slumped on Monday as a de-escalation of tensions between the United States and Iran propelled steep losses in oil prices.
Ample global supply, however, weighed on the market. In South America, Brazil is in the early stages of harvesting what is forecast to be a record soybean crop. Traders expect China to turn mainly to Brazil for imports in the coming months after a recent wave of US soybean purchases.
StoneX and agribusiness consultancy Celeres raised their forecasts for Brazil’s 2025/26 soybean crop on Monday, citing higher yields than previously expected in the world’s largest producer and exporter of the oilseed.
StoneX pegged Brazil’s soybean output this season at 181.62 million metric tons, up from 177.61 million tons previously — a 7.6percent year-on-year increase. Celeres estimated a record 181.3 million tons, a 5percent increase from its previous forecast of 177.2 million tons. For wheat, “lower demand and increased global competition can also weigh downn contracts,” the Shanghai-based analyst added.
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