Chicago Board of Trade soybean futures rose 1.7 percent on Tuesday, hitting a nearly one-month high on strong export demand and as rains delayed harvest in key production areas of the U.S. Midwest, traders said.
The delays also supported corn futures while wheat rose on technical buying and short-covering. Both corn and wheat were on track for their third straight day of gains.
Soybeans rose for the fourth session in a row, led by demand from commercial operators as cash market supplies were tight.
“Both crushers and exporters need to get their hands on physical bushels to offset long paper and meet contracts,” Brugler Marketing and Management LLC said in a note to client.
The U.S. Department of Agriculture said on Tuesday morning that exporters had sold another 110,000 tonnes of soybeans to China for delivery during the 2016/17 marketing year.
At 11:25 a.m. CDT (1625 GMT), CBOT November soybean futures were up 16-1/4 cents at $9.88-3/4 a bushel. The most-active contract hit its highest since Aug. 25.
Expected rains in the western half of the U.S. Midwest next week will cause further harvest delays as farmers wait for fields to dry out, forecaster Commodity Weather Group said in a note to clients.
CBOT December corn was 2-3/4 cents higher at $3.40 a bushel. CBOT December soft red winter wheat was up 2-1/4 cents at $4.06-1/4 a bushel.
The USDA said after the market close on Monday that 9 percent of U.S. corn had been harvested as of Sunday, down from the five-year average of 12 percent for this time of the year and analysts’ estimate of 11 percent.
The agency said 4 percent of U.S. soybeans had been harvested, down slightly from 5 percent on average.
Large global supplies continued to weigh on grain and oilseed markets.
Commerzbank analysts cut their price outlook for corn and wheat, citing the USDA’s projection of record global stocks in 2016/17.
A hold-up in purchases by Egypt’s government buyer was also weighing on wheat markets. Egypt, the world’s biggest importer, remained in a standoff with suppliers over a strict ban on traces of ergot fungus.
Egypt failed to attract a single offer at its state grain tender on Monday, forcing it to cancel its third consecutive wheat purchase tender.
(Source – http://www.dailymail.co.uk/wires/reuters/article-3798735/GRAINS-Soybeans-rally-harvest-delays-corn-wheat-firm.html)