BEIJING/PARIS: Chicago soybean futures were marginally up on Tuesday as traders adjusted positions before a widely tracked US Department of Agriculture crop report and assessed prospects for further Chinese demand. Corn also edged up while wheat eased in cautious trading before the USDA’s monthly world crop report due at 1700 GMT.
The most active soybean contract on the Chicago Board of Trade (CBOT) was up 0.3 percent at USD11.13-3/4 a bushel by 1232 GMT.
The benchmark rallied to a two-month high last week, spurred by US President Donald Trump’s remark that China had increased its target for US soybean purchases under a trade truce.
Market rumours that Chinese importers had made fresh purchases fuelled more gains on Friday, before prices eased on Monday when the USDA confirmed export sales of 264,000 metric tons of US soybeans to China.
“The recent rally in soybeans appears to be losing momentum, looking like a classic buy the rumour, sell the fact reaction,” CM Navigator analyst Donatas Jankauskas said in a note.
Traders remain sceptical about further sustained Chinese demand for US soybeans in the short term, with higher prices making US beans less economical compared with supplies from Brazil, which is expecting a record harvest. The USDA report will be watched for revisions to the agency’s South American forecasts, and adjustments to the US supply outlook after last month’s higher-than-expected projections for corn.
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