Chicago soybeans supported by China demand; corn near multi-month low

BEIJING: Chicago soybeans edged higher on Monday, supported by renewed Chinese purchases of US soybeans, although rapid harvest progress in the US Midwest continued to cap gains.

The most-traded soybean contract on the Chicago Board of Trade (CBOT) rose 0.18% to $12.63-1/2 a bushel by 0510 GMT.

China’s return to the US soybean market has lent support to prices.

On Friday, the US Department of Agriculture confirmed private sales totalling 558,000 metric tons of soybeans to China, bringing total confirmed sales to 1.358 million tons over the past three days.

A recent spell of dry weather across the US Midwest has enabled farmers to speed up harvesting of summer crops, with many growers prioritising soybeans ahead of corn.

CBOT corn slipped 0.21% to $4.73-1/4 a bushel, extending losses into a fifth straight session and remaining near a more than two-month low.

Prices have remained under pressure since the USDA raised its US corn production outlook in its October report, forecasting a 16.034 billion-bushel harvest.

The crop would be the second largest on record if realised.

“Bullish sentiment in the corn market faded after the USDA projected a larger-than-expected crop, driving prices below $5 a bushel,” said Johnny Xiang, founder of Beijing-based AgRadar Consulting.

Wheat rose 0.49% to $6.63-3/4 a bushel, rebounding from a two-month low touched on Friday. That said, favourable weather forecasts for US winter wheat planting this week continued to weigh on the market.

Commodity funds were net sellers of CBOT corn, soybeans and wheat, traders said on Friday.