US soyabean futures rose 1.5 percent on Thursday as equity markets stabilised in China, the world's top soya buyer, and on concerns about dry weather as the US Midwest growing season winds down, traders said. Corn clung to modest gains on better-than-expected weekly US export sales and spillover strength from outside markets, including crude oil.
But wheat fell in choppy trade on reminders of strong global competition for export business amid ample world supplies, and as stronger dollar. At the Chicago Board of Trade as of 1:10 pm CDT (1810 GMT), the benchmark November soyabean contract was up 13 cents at $8.78 a bushel. December corn was up 1-3/4 cents at $3.75 while December wheat was down 2 cents at $4.92-1/4. Soyabeans rose after China's two main stock indices surged 5.3 percent and 5.9 percent, snapping a five-day losing streak that had wiped around 20 percent in market value and sent tremors around global financial markets.
Forecasts for dry US weather added support. "Beans are putting in a little premium on forecasts that show drier weather for southern Illinois and Indiana. They look to be short-changed as far as rain goes, and that could adversely affect their late-filling soyabean crop," said Brian Hoops of Midwest Market Solutions.
Strong weekly US export sales for soyabeans and corn added to bullish sentiment. The US Department of Agriculture reported net weekly soyabean export sales for the 2015/16 marketing year that begins September 1 above trade expectations at 1.457 million tonnes. Weekly corn export sales were strong as well, at nearly 1 million tonnes for 2015/16.
Ample global supplies continued to anchor prices as latest estimates underlined big harvests in France and Russia, while in Australia, the largest wheat producing region is likely to receive ample rains during a crucial yield-setting stage. The International Grains Council raised its forecast for 2015/16 global wheat production by 10 million tonnes to 720 million, reflecting improved outlooks in Russia, Ukraine and the European Union.
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