Chicago Board of Trade soyabean futures firmed on Tuesday, recovering from weakness in overnight trading on technical buying amid lingering concerns about weather in key South American growing regions. Corn and wheat futures eased as traders staked out positions ahead of the release of key US Agriculture Department supply and demand reports on Thursday.
"I call this noise," said Ag Watch Market Advisors President Dewey Strickler. "It is an evening of positions going into the report." Traders said the weather in Brazil and Argentina remained at the forefront of the market, particularly after crop shortfalls from both major exporters in 2016. "While the weather looks a little better, we need drier weather in parts of Argentina, and we need more rain in parts of Brazil," said Greg Grow, director of agribusiness for Archer Financial Services in Chicago. "Everybody remembers what happened last year."
At 10:42 a.m. CST (1642 GMT), CBOT March soyabean futures were up 8 cents at $10.13-1/4 a bushel. Some technical buying helped push the market higher after prices fell below the 100-day moving average of $10.00-1/8. CBOT March wheat was down 1-3/4 cents at $4.25-1/2 a bushel, and CBOT March corn was 1-3/4 cents lower at $3.58-1/4 a bushel. Improving weather forecasts for winter wheat development around the globe added pressure to the grains. "Plains wheat to see showers across dry area this weekend," forecaster Commodity Weather Group said in a note to clients.
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