BEIJING: Chicago corn and soybeans futures gained on Wednesday after a higher supply outlook by the US Department of Agriculture (USDA) dragged prices lower overnight.
Wheat futures also edged higher as traders shifted focus to unfavourable weather conditions in Europe and the Black Sea region.
The most-active soybean contract on the Chicago Board of Trade (CBOT) gained 0.14% to $10.45 a bushel by 0313 GMT after dropping 0.57% on Tuesday.
“Chicago soybean prices were supported by a weak soymeal basis in South America,” said Johnny Xiang, founder of the Chinese agriculture consulting firm AgRadar Consulting.
Good crush margins in Brazil and Argentina have raised domestic soybean demand for processing into meal and oil, prompting global buyers to turn to US soybean supplies, Xiang said.
In its monthly report on Monday, the USDA projected US soybean and corn end-of-season supplies above market expectations, while cutting Argentina’s corn and soybean production outlook after hot and dry weather wilted crops.
However, global soybean supplies are still expected to be large due to a bumper crop in top producer Brazil, according to traders and analysts.
Agribusiness consultancies in Brazil diverged on the size of the country’s 2024-25 soybean crop. While AgResource Brasil raised its forecast to a record 172.28 million tons, Patria AgroNegocios trimmed its outlook to 165.87 million tons.
Chicago soy, corn, wheat slip on fresh US tariffs
The Chicago corn contract added 0.21% to $4.85 a bushel after dropping 1.53% in the previous session.
Wheat rose 0.04% to $5.77 a bushel after the USDA lowered its wheat supply outlook due to adverse weather in Europe and the Black Sea region.
Wheat was also supported by reduced shipments from Russia, where export quotas have been set from February 15 to June 30.
South Korean flour mill CJ CheilJedang bought about 30,000 tonnes of US-origin milling wheat on Tuesday, while the Feed Leaders’ Committee tendered for 50,000-65,000 tonnes of animal feed wheat, European traders said.
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