US soybean futures rose on Wednesday for a fourth day, staying near a four-month high on stepped-up US export demand as dry weather threatened crops in South America. But wheat and corn fell to three week-lows on technical selling, ample global wheat supplies and expectations of rising US corn stocks in 2012/13. Chicago Board of Trade soyabeans got a boost after the US Department of Agriculture confirmed sales of 116,000 tonnes of US Soyabeans to China.
It was the third straight daily announcement of sizable US soybean sales, with the previous two sales earmarked for "unknown destinations" - which could include China. The three-day soy sales total was 519,000 tonnes, with 331,000 tonnes targeted for delivery in the current marketing year that began September 1.
Traders anticipated an announcement of more sales on Wednesday during a visit by a Chinese delegation accompanying Vice President Xi Jinping to Iowa, the top US soybean state. "The big news is the new sales to China, and also the idea that they are going to ink a deal in Iowa today," said Mike Zuzolo with Global Commodity Analytics in Lafayette, Indiana.
"The trade is pricing that in, and continues on this path of buying beans and selling corn," Zuzolo said. Soyabeans are up nearly 3 percent this week and have advanced for four straight sessions on US export demand as dry weather threatens the yield potential of soy crops in far southern Brazil.
"Stress in the south-western one-quarter of the Brazil soybean belt will continue to trim yields over the next week, with some relief in the latter half of next week providing limited benefit at this late date," US forecaster Commodity Weather Group said in a daily note. At the CBOT, March soyabeans settled up 6 cents at $12.61 per bushel after reaching $12.69, the highest spot soybean price since October 17, 2011.
March corn ended down 6-1/2 cents at $6.27 per bushel and March wheat fell 9 cents at $6.26 a bushel, dropping below its 50-day moving average. Corn futures have been losing ground to soyabeans this week on inter-market spreads as traders fret that US farmers might not plant enough soy acres this spring to meet global demand, especially if South American crops sustain further downgrades.