US soybeans up as soyoil soars; Black Sea tensions lift wheat, corn

CHICAGO: US soybean futures climbed back above USD12 per bushel on Friday as soyoil soared nearly 3 percent to a six-week high on rising demand for the biofuel feedstock, analysts said.

Fresh US soybean sales to China and other destinations lent support. Wheat and corn futures firmed on fears of grain export disruptions from the Black Sea region. Chicago Board of Trade November soybeans settled up 8 cents, or 0.7 percent, at USD12.03 per bushel while December soyoil ended up 1.86 cents, or 2.6 percent, at 72.43 cents per pound.

CBOT September wheat settled up 8 cents, or 1.2 percent, at USD6.82-3/4 per bushel and December corn finished up 3-1/2 cents, or 0.75 percent, at USD4.67-1/2 a bushel. Soybeans firmed after the US Department of Agriculture confirmed private sales of 340,000 metric tons of US soybeans to China, as well as 110,000 tons to undisclosed destinations and 256,634 tons to Mexico.

Chinese buyers were seeking bids for more US soybeans on Friday, said Dan Basse, president of Chicago-based AgResource, a day after US President Donald Trump alleged Chinese interference in US elections.

“Even though Trump was alleging China (was) interfering with our elections, the Chinese aren’t bothered by it, and they are continuing with their business,” Basse said. Soyoil futures climbed after Washington announced new tariffs this week on imports of Brazilian goods, including beef tallow, which competes with soyoil as a feedstock for biodiesel. The news followed monthly data from the National Oilseed Processors Association, released on Wednesday, showing a drawdown in US soyoil stocks to an eight-month low.

“We have got a very strong demand profile for soybean oil,” Basse said. Wheat and corn futures rallied but hovered below multi-week highs set a day earlier. Prices have been supported in the past week by drone attacks on vessels in the Black Sea and the Sea of Azov as Russia and Ukraine stepped up hostilities in a zone vital for grain exports.

“A third of wheat exports could be at risk if the mutual attacks continue. The slight fall in prices since yesterday is therefore unlikely to last,” Commerzbank said in a note.

Market players continued to monitor weather in the US Midwest crop belt following a week of searing heat.

“We’ve had heat this week, which has probably done damage to the crop,” said Don Roose, president of Iowa-based US Commodities.

Forecasts called for milder temperatures next week and chances for rain in the eastern Midwest.