Soya rises to seven-week high

US soyabeans rose 1 percent on Monday to a seven-week high on steady export demand and as unfavourable weather in South America slowed the harvest in northern Brazil and threatened crops in Argentina. Corn fell for a second consecutive session on concerns about demand after a government report showed export inspections last week were lighter than anticipated, while wheat prices eased on forecasts for rain in the drought-hit southern Plains.
Sinking crude oil and equities markets and a firmer US dollar added pressure in corn and wheat, offsetting spillover support from the higher soyabean market. Mike Zuzolo, president of Global Commodity Analytics, said that for soyabeans, "the fear has been resurrected this morning that not only do we have weather issues in South America, but we're not slowing the demand down here in the United States like we need to. That was exacerbated today by another new sale to China, half of which was old-crop." The US Department of Agriculture confirmed on Monday private sales of 116,000 tonnes of US soyabeans to China, with 58,000 tonnes of it for shipment in the current marketing year, which ends August 31.
The weather in Brazil was mostly favourable for crops, but recent rain trimmed yields and stalled the harvest in parts of the country. Local Brazilian consultancy AgRural on Monday lowered its soya crop forecast from a month earlier on crop-reducing rains. Meanwhile, dry conditions remain an issue in Argentina's crop growing areas.
"There will be some rains, but it's still drier than average in Argentina. It continues to draw down soil moisture reserves headed into the critical reproductive stage of development, so that's not good," said Global Weather Monitoring meteorologist John Dee. Argentina is the world's No 3 soyabean and corn exporter after the United States and Brazil. Consumer nations are hoping it can provide ample supplies of both crops to bolster world food stocks. Chicago Board of Trade March soyabeans rose 14-1/2 cents, or 1 percent, to $14.88-3/4 per bushel, rising for the sixth time in seven sessions. Corn and wheat were higher early, but came under pressure after the US Department of Agriculture reported at midmorning that export inspections of both grains declined last week. CBOT March corn shed 1-3/4 cents, or 0.2 percent, to $7.34-1/4 a bushel. CBOT March wheat dipped 2-3/4 cents, or 0.4 percent, to $7.62-1/4 a bushel.