Soybeans extend gains on Brazil weather concerns, China demand optimism

BEIJING: Chicago soybean futures climbed on Thursday, as weather concerns in Brazil and hopes for continued Chinese demand for US supplies supported prices.

Wheat and corn also edged higher. The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose 1% to $11.35 a bushel by 0307 GMT.

CBOT wheat Wv1 gained 0.2% to $5.38-1/2 a bushel.

Corn Cv1 rose 0.1% at $4.27-3/4 a bushel. Heavy rainfall in central Brazil, world’s largest soybeans producer and exporter, have aided US soybeans prices, analysts said.

“Rain in Brazil is creating problems for quality and harvesting. The impact is to delay the flow of export quality soybeans to market from Brazil.

The US is the only large-scale alternative for now, so that helps US prices,“ said Tobin Gorey, founder of agricultural consultants Cornucopia.

While Brazilian soy production is still expected to be high, excessive rain has increased grain moisture which have caused issues with mould, grain breakage, and led to the rejection of some shipments, analysts said.

“Physical traders were likely relaxed about buying given the likely huge crop. Now they need to be active to make sure they have enough,” Gorey said. Brazil has begun harvesting a record-large soybean crop.

The USDA raised its estimate of 2025/26 soybean production in Brazil by 2 million metric tons to 180 million tons on Tuesday, above analysts’ average estimate.

Farmers and traders are also tracking demand from China, the world’s biggest soybean importer, after a thaw in ties between Beijing and Washington in October increased purchases of US supplies.

The USDA on Monday confirmed new export sales of 264,000 metric tons of US soybeans to China.

Beijing was “reported to be considering buying more US soybeans,” the USDA said in its monthly supply-demand report on Tuesday.

With expected global demand stable, any more Chinese purchases would likely mean a reshuffle in US exports “with more US shipments to China and less to other markets,” the agency said.