New-crop soya rises; corn tops one-week high

New-crop US soyabean futures rebounded on Thursday from a contract low set earlier in the session, while corn topped a one-week high in a recovery from recent losses and wheat futures ended a five-day slide. Traders took profits on previously sold, or short, positions after crop prices came under pressure earlier this week from expectations that US soya and corn yields will surpass forecasts issued in a monthly US Department of Agriculture report on Tuesday.
Analysts said the USDA will likely increase its yield estimates in the coming months due to favourable weather in the Midwest. "Ideas of a huge crop waiting to be harvested kept gains in check," said Brian Hoops, president of brokerage Midwest Market Solutions. Chicago Board of Trade November soyabeans gained 0.9 percent to $10.56 a bushel after earlier touching a contract low of $10.38-3/4.
December corn rose 1 percent to $3.73-1/2 a bushel, after reaching a contract low of $3.58 on Tuesday. The contract has ended higher for four consecutive sessions, its longest streak of gains since February. December wheat added 1.3 percent at $5.52-3/4 a bushel. Commodity funds bought an estimated 5,000 corn contracts, 4,000 soyabean contracts, and 3,000 wheat contracts.
"Light short covering in thin trade is taking place," said Karl Setzer, grain solutions team leader for MaxYield Co-operative in Iowa. "A large reason for this is post-report positioning." Traders also continue to monitor crop weather amid talk about pockets of dry land in the Corn Belt as well as about areas of the Midwest and northern Plains that need warm temperatures through autumn to achieve good corn and soya yields, Setzer said.
In Tuesday's report, the USDA put the US soyabean crop at a record 3.82 billion bushels, near trade expectations, and the US corn harvest at a record 14.032 billion bushels, below analysts' consensus estimate of 14.253 billion. On Friday, traders will analyse monthly data from the National Oilseed Processors Association, which is expected to show that US soya processors in July slowed their crushing pace due to tight supplies ahead of the autumn harvest.
US soyabean export sales last week were 1.143 million tonnes, above expectations for 850,000 to 1.05 million tonnes. Weekly corn export sales of 670,700 tonnes were within expectations of 600,000 to 900,000 tonnes, while wheat export sales of 338,700 tonnes were below estimates of 450,000 to 650,000 tonnes.