SINGAPORE: Chicago soybeans gained more ground on Friday, trading close to their highest since mid-September, as strong demand led by top importer China underpinned the market.
While soybeans were likely to post a weekly gain, wheat was on track for a fifth consecutive weekly decline and corn was down for a second straight week.
“Soybeans were supported by additional US export demand and good export sales,” said Terry Reilly, senior agriculture futures analyst at Futures International.
The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.1% to $14.88 a bushel, as of 0335 GMT, wheat added 0.1% to $7.47-1/4 a bushel, and corn gained 0.1% to $6.43 a bushel.
For the week, soybeans have gained about 3.5%, while wheat was down 1.8% and corn has given up around half a percent.
US exporters on Thursday morning reported sales of 118,000 tonnes of soybeans to China and 718,000 tonnes of soybeans to unknown destinations for delivery in the 2022/23 marketing year.
This marks the third flash sale of soybeans to China this week, spurring broader hopes that easing COVID-19 lockdown measures in China will boost demand for US commodities.
For the week ended Dec. 1, export sales of soybeans totalled 1.746 million tonnes, the US Department of Agriculture (USDA) said, beating the high end of trade forecasts that ranged from 600,000 to 1.45 million tonnes.
Argentina’s estimated area for 2022/23 soybeans could be cut due to the effects of prolonged drought in the region, the Buenos Aires Grains Exchange said on Wednesday.
Soybeans firm on demand optimism, wheat faces pressure from Black Sea supplies
The moves in grains were limited as traders awaited monthly world crop forecasts from the USDA on Friday. Export demand for US wheat continues to languish, with 189,800 tonnes sold in the week ended Dec.
1, near the low end of analysts’ forecasts ranging from 150,000 to 400,000 tonnes.
Corn export sales for the week totalled 691,600 tonnes, in line with analysts’ estimates for 300,000 to 1.075 million tonnes.
Brazil’s total grain crop is expected to reach a record 312.2 million tonnes, government food and statistics agency Conab said on Thursday, up 15% from the previous year though slightly down from an earlier estimate of 313.04 million tonnes.
Commodity funds were net buyers of CBOT soybean, soymeal, corn and soyoil futures contracts on Thursday and net sellers of wheat futures, traders said.
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