BEIJING: Chicago soybeans rose on Tuesday, supported by higher soyoil prices, which tracked gains in the crude oil market amid the ongoing war in the Middle East, while concerns over Chinese demand and competition from Brazil kept a lid on prices.
The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.37percent to USD11.68-1/4 a bushel by 0334 GMT. Soyoil gained 0.48percent to 63.04 cents per pound. “Soyoil markets continue to lift on the back of the surging crude oil markets owing to the conflict in the Middle East and closure of the Strait of Hormuz,” said Sean Hickey, an analyst at Bendigo Bank Agribusiness. Soyoil often tracks crude because it is used as a biofuel substitute for fossil fuels.
Despite these gains, a stronger US dollar, doubt surrounding Chinese demand for US soybeans, and the ongoing Brazilian harvest have kept prices in check, Hickey said.
Brazilian farmers had harvested 39percent of their soy crop as of last Thursday, AgRural said, up 9 percentage points from the previous week but lagging the 50percent reported a year earlier. Consultancies AgRural and StoneX trimmed their forecasts for Brazil’s 2025/26 soybean output on Monday, as yield losses caused by adverse weather in Rio Grande do Sul state weighed on overall production.
Meanwhile, CBOT wheat dropped 0.09percent to 5.76-3/4 a bushel, weighed by improving US crop weather that alleviated concerns about stress on the winter wheat crop and a well-supplied global market. Saudi Arabia’s main state buying agency said it purchased about 794,000 metric tons of wheat in an international tender, exceeding the 655,000 tons it had sought earlier.
Corn added 0.11percent to 4.46-1/4 a bushel, supported by strong demand. “Underlying export data for corn indicated demand is strong, which is supporting markets there,” said Hickey.
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