Soybeans rise for third session on Chinese buying hopes, upside limited

SINGAPORE: Chicago soybeans climbed to a two-week high on Wednesday, with the market supported by talk that Chinese importers are in the market to book US cargoes, although favourable crop weather in the Midwest kept a lid on prices.

Wheat inched higher, while corn was largely unchanged.

“Chinese companies have been inquiring about prices of new-crop US soybeans for shipment in the fourth quarter, which is supporting prices,” said one trader in Singapore.

“But we haven’t heard of any deals being signed.”

The most active soybean contract on the Chicago Board of Trade (CBOT) rose 0.6% to $11.52-3/4 per bushel, as of 0302 GMT.

Wheat rose 0.1% to $6.05 a bushel, and corn was flat at $4.13-3/4 a bushel.

Soybeans touched their highest since June 4 at $11.53 a bushel earlier on Wednesday On Monday, corn hit a nine-month low, soybeans a four-month low, and wheat a two-month low.

Widespread rain and warm weather have generally been seen as beneficial to crops across the central United States over the past week, reinforcing market expectations of an adequate global supply of major crops.

The US Department of Agriculture rated 68% of the nation’s corn and 66% of soybeans in good-to-excellent condition late Monday, each up one percentage point from a week earlier.

Spring wheat was rated 55% good to excellent, up 3 percentage points from last week.

A steep decline in crude oil prices following the announcement of an outline deal to end the US-Israeli war on Iran has added pressure on grain and oilseed markets.