HAMBURG: Chicago soybean futures hit their highest level in some eight weeks on Monday as adverse weather threatened crops in top exporter Brazil and expected demand for US supplies also underpinned. Additional support came from a weaker dollar which makes US supplies cheaper in world markets. But wheat was undermined by selling pressure and profit-taking after rising on Friday.
Chicago Board of Trade most-active soybeans rose 1.0% to $13.65-1/2 a bushel at 1120 GMT, after earlier on Monday hitting their highest since Sept. 12 at $13.69-3/4 a bushel.
Corn rose 0.4% to $4.79-1/4 a bushel, wheat fell 0.5% to $5.69-1/4 a bushel. Dealers are monitoring uneven crop weather in Brazil, where soybean planting is under way. Dryness is a concern in leading soy-producing state Mato Grosso, while excessive rains have drenched southern areas. “Markets are jittery about the weather risks to the soybean crop in Brazil,” said Matt Ammermann, StoneX commodity risk manager. “Central and northern Brazilian soybean regions are still seeing dryness, still not the rains the market wants to see, so there is worry about crop stress.”
“After the export sale of US soybeans reported on Friday there remains hopes of more US export deals, with China in focus.” Corn is also supported by US export hopes with the weaker trend in the dollar, he said. Both US soybean and corn harvests are coming to a close. “Wheat is seeing some selling pressure today after rising on Friday,” Ammermann added. “Very cheap sales offers for Russian wheat continue to burden wheat.”
Wheat losses were limited by signs of more demand, with major importer Algeria issuing a buy tender. “There is hope we could see more import demand after a quiet period in the tender market with both Algeria and Jordan tendering this week,” one German trader said.
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