CHICAGO: Chicago Board of Trade soybean futures set a two-week high on Friday and corn futures also advanced as traders refocused on tightened US supply forecasts.
The US Department of Agriculture lowered its projection for 2026-27 soybean ending stocks in a monthly report on Tuesday, when analysts were expecting an increase. It also pegged US corn stocks below analysts’ expectations.
“We’re still digesting the report from earlier in the week,” said Matt Wiegand, commodity broker for FuturesOne. “We got friendlier carryout numbers on corn and beans.” Most-active CBOT soybeans were up 13-1/2 cents at USD12.32-1/2 a bushel and reached their highest level since October 30 at USD12.40-3/4 in afternoon trading. Corn futures rose 3-1/2 cents to USD4.46 a bushel, while wheat was up 9 cents at USD5.93-1/4 a bushel after earlier falling to its lowest since June 30 at USD5.82.
Technical buying helped to support the rebound in wheat, traders said. This week, a surge in the dollar index to a 19-month high pressured US grains by making them look more expensive overseas. Some traders said losses on Thursday were overdone. “Grains are bouncing strongly after yesterday’s sharp selloff,” said Andrey Sizov, head of consultancy Sovecon.
The USDA on Friday reported that exporters sold US soybeans to China, Vietnam and unknown destinations and US corn to Mexico. Traders monitored continued disruptions to Black Sea grain exports, despite diplomatic efforts to end Russia’s war with Ukraine.
With no sign of progress in Russia-Ukraine talks toward a ceasefire in the Black Sea, limited shipments should support wheat prices, Sizov said. He added that competitively priced new-crop Argentine wheat could remain a cap on prices.
“If wheat starts flowing through the Black Sea, there’s likely more downside for prices,” said Rod Baker, an analyst at Bendigo Bank. “If it doesn’t, we’re getting close to a price floor now.”