US soyabeans rallied 1.2 percent on Monday, spurred by strong manufacturing data in China, the world's largest importer of soyabeans. Corn ended firm and above a key 200-day moving average support level, a bullish signal, but well below the day's highs as an early wave of fund buying waned.
Wheat also rose. Rice jumped to its 50-cent daily trading limit on concerns about severe flooding in top exporter Thailand, which may shift some export business to the United States. Markets welcomed news that China's manufacturing sector expanded moderately in October to snap three months of contraction, soothing fears of an abrupt slowdown in the world's second-largest economy.
The data allayed concerns that China could be headed for a hard landing and helped to lift crude oil and copper prices. Investors also initially warmed to progress made by European Union leaders on Sunday towards agreeing a new package to shore up the eurozone, but final decisions were left to a follow-up summit on Wednesday. Uncertainty about the way forward for the EU appeared to be sidelining some investors.
"There are not enough details for anybody to have confidence yet," said Dan Basse, president of AgResource Co in Chicago. Corn futures advanced but encountered chart-based resistance above $6.60 per bushel, a level that appeared to trigger selling by funds as well as a few farmers.
However, the spot December contract found support and was trying to form a base at its 200-day moving average of $6.49-1/2. "Corn is having a tough time at this $6.62-$6.63 level. That used to be our support when we were trading at $7, but now it's going to be a resistance level," said Mark Schultz with Northstar Commodity in Minneapolis. Hedge-related selling was a factor after US farmers in a few areas unloaded some of their new harvest over the weekend.
Chicago Board of Trade November soyabeans closed up 14-1/2 cents per bushel at $12.26-3/4, December corn was up 1-3/4 cents at $6.51 and December wheat ended up 10-1/2 at $6.42-1/2. After the close, the US Department of Agriculture's weekly crop progress report said the US corn harvest was 65 percent complete, up from 47 percent a week earlier but at the low end of trade expectations.
USDA said the US soyabean harvest was 80 percent complete, also at the low end of expectations. In its first US winter wheat condition ratings of the season, USDA said 47 percent of the crop was rated in good to excellent condition, identical to the year-ago ratings.