BEIJING/PARIS: Chicago soybean and corn prices edged up on Friday as traders adjusted positions ahead of a clutch of US Department of Agriculture (USDA) crop reports, while weather concerns in South America continued to underpin the markets.
Chicago soyoil futures extended a rally to a seven-week peak on expectations of US President Joe Biden’s outgoing administration releasing short-term guidance on clean fuel tax credits, in a possible boost for domestic demand for soyoil.
Wheat prices eased, with a stronger US dollar keeping a lid on prices.
Grain markets are gearing up for the USDA’s monthly world supply and demand report, to be issued alongside estimates of US grain stocks and winter wheat seeding.
The most-active corn contract on the Chicago Board of Trade (CBOT) gained 0.3% to $4.57-1/4, while soybeans rose 0.3% to $10.02-1/4, by 1314 GMT.
“The corn balance sheet will probably be the key point since the good export dynamics in the United States, combined with the weather issues in Argentina and Brazil, is likely to strain the balance sheet,” Argus analysts said of the USDA report.
Rains are needed to refresh Argentina’s parched soy and corn crops, the Buenos Aires Grain Exchange said. It is expected to rain within the next week after weeks of hot and dry weather.
CBOT soybean oil was up 2.9% at 43.99 cents per pound, after earlier reaching its highest since November.
The rally was fuelled by talks that incentives for importing used cooking oil (UCO), which competes with soyoil for use in renewable diesel, would end, traders said.
The tax credits, vital to Biden’s sustainable aviation fuel goals, remain dormant due to a lack of US Treasury guidance. Biofuel companies and supporters now await Donald Trump’s stance on the upcoming guidelines.
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