US soyabean futures rallied on Monday on signs of strong export demand that threatened to further deplete thin US supplies, traders said. The gains in soyabeans pulled corn higher, but wheat futures sagged to a three-month low on ample global stocks and lacklustre demand. CBOT wheat has fallen for nine sessions in row.
Tight US soyabean supplies, combined with expectations of a huge harvest this fall amid forecasts for good crop weather in the Midwest, led investors to add to bull spreads. The spreading pushed the front-month soyabean contract above $15 a bushel while new-crop months were close to unchanged. Corn prices followed a similar pattern. The US Agriculture Department will release its first ratings for the recently seeded corn crop on Monday afternoon. Analysts expected the USDA to show good-to-excellent ratings for corn at 70 percent.
"This weather continues to benefit most of the US crop," Matt Zeller, director of market information at INTL FCStone, said in a note to clients. Soyabean prices surged to session highs after the USDA said weekly export inspections of the oilseed were a better-than-expected 156,364 tonnes. The benchmark Chicago Board of Trade July soyabean futures contract was up 13-3/4 cents at $15.07 a bushel at 11:35 am CDT (1635 GMT). CBOT July corn rose 2-1/2 cents at $4.68-1/4 a bushel, and CBOT July wheat was 6 cents lower at $6.21-1/4 a bushel. The front month contract bottomed out at $6.16-1/4, its lowest since hitting $6.08-1/4 on March 3.
Comments
Comments are closed.