SINGAPORE/PARIS: Chicago wheat and soybean edged higher on Tuesday, adjusting positions ahead of key reports expected later this week, even as they were trading close to the previous session’s level, which was the lowest in over three years, amid expectations of ample world supplies.
The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.3% to $12.25 a bushel, as of 1130 GMT. Corn added 0.2% to $4.43-1/2 a bushel and wheat gained 0.1% at $5.90-3/4 a bushel.
Soybeans dropped to their lowest since December 2020 on Monday at $11.79-1/2 a bushel.
Grain futures prices have been moving sideways in overnight trade with a focus on a slew of government reports slated to be released on Thursday.
The data includes the US Department of Agriculture’s (USDA) monthly supply and demand report, Brazil’s CONAB monthly corn & soy production estimates, and Statistics Canada’s grain stocks report.
“The focus is going to be on estimates for soybean production in Brazil and Argentina,” said one trader in Singapore.
“Brazil’s soybean crop has suffered and the output is likely to decline as compared with what was estimated earlier, but we are expecting a bumper output in Argentina.
Overall, the market is going to be well supplied.”
Brazilian farmers have sown 27% of the area expected to be planted with second corn in the center-south, marking the fastest pace for second corn planting since records began in 2013, agribusiness consultancy AgRural said on Monday.
Russian wheat export prices continued to decline last week, still under pressure from oversupply, while shipments rose to a four-month high after better weather at ports, analysts said.
The price of 12.5% protein Russian wheat scheduled for free-on-board (FOB) delivery in March was $228 a metric ton, down $7 from the previous week, the IKAR agriculture consultancy reported.
The USDA on Monday reported weekly export inspections showed US soybeans in the latest week at 1,426,472 metric tons, far above trade expectations - but below the volume at the same time last year, traders said.
Commodity funds were net buyers of CBOT soybean, corn, soyoil and soymeal futures contracts on Monday, and net sellers of wheat futures contracts, traders said.