Chicago Board of Trade soyabean futures closed higher on Wednesday on position-squaring a day ahead of a monthly US Department of Agriculture report in which analysts expect the government to lower its estimates of US 2019 soyabean production and ending stocks. CBOT August soyabeans settled up 8-1/2 cents at $8.94-1/2 per bushel. CBOT August soyameal ended up $1.50 at $310.70 per short ton and August soyaoil ended up 0.08 cent at 28.09 cents per pound.
Ahead of the USDA's monthly supply-demand report, analysts surveyed by Reuters on average expect the government to lower its estimates of US 2019/20 soyabean yield, production and ending stocks. Ahead of the USDA's weekly export sales report on Thursday, traders expected the government to report weekly US soyabean sales at 250,000 to 750,000 tonnes (old and new crop years combined).
Traders are watching warm weather in the US Midwest crop belt and a storm in the US Gulf of Mexico that could send excessive rains into the Mississippi River Delta. Traders are also monitoring US trade talks with top global soya buyer China for signs of progress. US and Chinese negotiators held a constructive phone call on Tuesday, White House economic adviser Larry Kudlow said.

Copyright Reuters, 2019

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