Soybeans and corn firm on higher oil prices, but set for weekly losses
- The most-active soybean contract on the Chicago Board of Trade rose 0.3% to $11.92-1/4 a bushel
Soybeans and corn rose on Friday, supported by oil prices, but ample global supplies and prospects of renewed Black Sea exports for wheat limited gains, leading to weekly losses.
- Impact of rising crude oil futures on agricultural commodity prices.
- Anticipated USDA report on US corn and soybean production estimates.
- Prospects of renewed Black Sea grain exports and their effect on wheat prices.
SINGAPORE: Soybeans and corn rose on Friday as gains in oil prices supported agricultural goods, although expectations of ample global supplies limited the upside and left both markets on track for weekly losses.
Wheat slid on prospects of a resumption of Black Sea grain exports.
“The downside is limited at current levels,” said one grains trader in Singapore.
“Oil is bit supportive but we don’t expect a big move before next week’s US report.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.3% to $11.92-1/4 a bushel by 0225 GMT, while corn added 0.1% to $4.40-1/2 a bushel.
Wheat lost 0.3% to $5.97-1/2 a bushel. Soybeans are down more than 3% this week, heading for their biggest weekly drop since late July, and corn is poised for a sixth consecutive weekly loss.
On Friday, grains and oilseeds were underpinned by a rally in crude oil futures, which often provide direction to farm goods for their growing use in making biofuels.
Brent crude futures settled more than $3 a barrel higher on Thursday as new attacks on tankers fed worries about oil supplies while investors reassessed the outlook for the US-Israeli war with Iran.
The US Department of Agriculture is scheduled to issue an update on the size of the nation’s crops in a monthly report next week.
Analysts expect the agency to peg corn production at 15.962 billion bushels, down from its October estimate of 16.034 billion, according to a Reuters poll.
The harvest would be the second-largest in history, after last year’s record crop.
They expect the USDA next week will increase its estimate of US soybean production to 4.597 billion bushels from 4.562 billion in October, a record-large harvest.
Wheat prices have rallied this year as the Russia-Ukraine war disrupted grain exports through the Black Sea, but alternative shipping routes have helped avert supply shortages many traders had feared.
Growing volumes of Russian wheat are being exported via Baltic ports, while Ukrainian exports are also increasing, especially via Romania and the Danube.
Russia and Ukraine confirmed participation in three-way peace talks with the US in Abu Dhabi on November 10 and 11, raising the prospect of renewed access to Black Sea shipping lanes.