CHICAGO: Chicago soybeans rose for a second session on Friday as brisk US exports driven by renewed Chinese demand helped to counter price pressure from an expected record Midwest harvest.
Corn dipped on the advancing harvest and wheat ticked up as attacks disrupting Black Sea shipping continued in the Russian war against Ukraine.
The most traded soybean contract on the Chicago Board of Trade rose 4-1/4 cents to USD12.57-1/4 a bushel by 11:02 a.m. (1602 GMT). “Soybeans are taking support from solid demand numbers and thoughts Brazil may be less competitive in the global market this year,” said Karl Setzer, co-founder of Consus Ag Consulting.
“A strong energy complex is also supporting soybeans,” he added. The US Department of Agriculture on Thursday reported net export sales of US soybeans in the week ended October 15 at 2.8 million metric tons, near the top end of market estimates, as a run of Chinese purchases boosted volumes.
And on Friday, oil prices rose, with Brent crude touching its highest since early May, after Houthi attacks in Saudi Arabia stoked concern over further disruption to energy supplies from the Middle East, where UAE authorities also reported an oil spill. CBOT corn fell 4-1/4 cents to USD4.56-1/4 a bushel while CBOT wheat rose 3-3/4 cents to USD6.28-1/2 a bushel.
Corn has been dented by the advancing US harvest, which could further bolster large US stocks. The wheat market registered liquidation by investment funds this week as a round of US-led diplomacy aimed at ending Russia’s war with Ukraine raised hopes of a revival of Black Sea grain trade.
But attacks have continued since the talks, including a drone strike that sank a cargo ship off the Romanian Black Sea coast. “I’m still skeptical that the current diplomatic push will actually produce an end to the conflict in the near-term, especially with Russia not showing any signs of slowing their attacks,” Mike Castle, senior commodities economist at StoneX, said in a client note.
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