SINGAPORE: Chicago soybeans gained more ground on Tuesday, reaching their highest since late July, after a US government report showed a decline in crop conditions, while strong Chinese demand also underpinned prices.
Wheat was largely flat, with the market holding on to recent gains on support from disruptions to Black Sea supplies. “Chinese buying is likely to provide support for soybean prices,” said one oilseed trader in Singapore. “The market expects Chinese companies to step up purchases in the coming weeks.” The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.7percent to USD12.24-1/2 a bushel by 0342 GMT, having hit its highest since July 27 earlier in the session.
Wheat was unchanged at USD6.89-1/4 a bushel and corn gained 0.4percent at USD4.91-1/4 a bushel. The US Department of Agriculture lowered its condition ratings for the nation’s corn and soybean crops in a weekly report on Monday, in line with trade expectations, after recent rains in the US Midwest.
The agency rated 60percent of the corn crop in good-to-excellent condition as of Sunday, down 1 percentage point from a week earlier and the lowest for the 33rd week of the calendar year since 2023. The USDA rated 61percent of the soybean crop in good-to-excellent condition, also down 1 percentage point from last week and the lowest for this time of year since 2023.
Agricultural market participants are closely watching a tour of US corn and soybean farms for price direction. South Dakota’s corn yield prospects and soybean pod counts are lower than last year and the three-year average, scouts on an annual tour of top US producing states found on Monday, following a hot and dry summer.
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