US soyabean futures rose early on Thursday as stronger-than-expected export sales re-ignited concerns about dwindling old-crop supplies. Corn futures advanced for the first time in four sessions, while wheat gained for the second straight session, bouncing from a four-month low set early on Wednesday.
Strong demand for US soyabeans lifted prices as the US Department of Agriculture reported export sales last week were 774,800 tonnes, above estimates for 250,000 to 550,000 tonnes. Within that total, sales of old-crop soyabeans alone were 317,200 tonnes, a surprise for traders because inventories are scarce. The USDA, in a quarterly report on Monday, is expected to say that US soyabean stock as of June 1 were 378 million bushels, a 37-year low for that date, according to a Reuters survey of analysts.
"Old-crop sales people were thinking would be none or even negative," said Mike Krueger, president of the Money Farm in North Dakota. Front-month soyabean futures traded up 0.9 percent to $14.28-1/2 a bushel at of 10:35 am CDT (1535 GMT) at the Chicago Board of Trade.
November soyabean futures, which represent the crop that will be harvested in the autumn, rose 0.6 percent to $14.36-1/2 a bushel. The upcoming harvest is expected to help replenish supplies. Front-month corn futures rose 0.7 percent to $4.44-1/4 a bushel, while new-crop December corn gained 1 percent to $4.44-1/2. Front-month wheat futures added 0.3 percent to $5.77-1/4.
Corn prices rose on positioning ahead of USDA reports on stocks and plantings on Monday. Prices hit a four-month low last week on expectations for a bumper US harvest. Analysts expect US corn stocks were 3.722 billion bushels as of June 1, a four-year high for that date, and wheat stocks were 598 million bushels, which would be the lowest in six years.
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