Soy firm at 4-year top on Chinese demand, vaccine optimism

PARIS/SINGAPORE: Chicago soybean futures edged up to a fresh four-year high on Tuesday, underpinned by strong Chinese demand and wider market enthusiasm over a potential COVID-19 vaccine.

Corn and wheat ticked up, steadying after declining a day earlier, as grain markets waited for the US Department of Agriculture's (USDA) monthly world crop report at 1700 GMT that is expected to trim US and world supplies.

Soybeans, already buoyed by brisk export demand and doubts over US and South American harvest prospects, drew extra support from a surge in share and oil prices since Monday as financial markets hailed progress in trials of a coronavirus vaccine developed by Pfizer and BioNTech.

"Early days, of course, but this breakthrough is truly a reason to become more optimistic," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

"Soybean prices clearly gained in the wake of COVID-19 vaccine hopes. Also helping was more evidence of a post-election pickup in US soybean sales to China."

The most-active soybean contract on the Chicago Board Of Trade was up 0.6% at $11.16-3/4 a bushel by 1302 GMT.

It earlier reached $11.19, its highest since July 2016 and just above Monday's four-year peak of $11.18.

The USDA on Monday reported that exporters had sold 123,000 tonnes of US soybeans to unknown destinations, often seen by traders as denoting China.

The soy market was also monitoring a strike by grain port workers in major exporter Argentina.

CBOT wheat added 0.4% to $6.00 a bushel and corn was up 0.7% at $4.10-1/2 a bushel.

The USDA's monthly supply and demand report is being watched to see if it raises projected Chinese corn imports in line with other forecasters.

The wheat market was focusing on any USDA revisions to Australian supply, with the southern hemisphere exporter's big expected harvest already weighing on export markets.