US soyabean futures advanced on Friday, rallying on bargain buying one day after cancellations of US soyabean sales to China sent the market to a three-week low, traders said. Corn and wheat also bounced back, although poor export prospects hung over the market. At the Chicago Board of Trade as of 12:53 pm CST (1853 GMT), March soyabeans were up 11-3/4 cents at $8.79-1/2 a bushel after trading as low as $8.67, its lowest since January 12.
March corn was up 5-1/2 cents at $3.71 per bushel and March wheat was up 3 cents at $4.75-1/4 a bushel. Soyabeans rose but the March contract stayed below chart resistance at its 100-day moving average near $8.81. "When we dip into some support areas, we'll see that buying from time to time, but I don't really look for this buying interest to be maintained or sustained unless weather in South America is very dry in the long term," said Brian Hoops, analyst at Midwest Market Solutions.
The US Department of Agriculture reported weekly export sales of US soyabeans in the latest week at 647,800 tonnes, in line with trade expectations for 500,000 to 800,000 tonnes. However, the USDA on Thursday said exporters cancelled sales of 395,000 tonnes of US soyabeans sold to China, a factor that traders were still digesting. "Cancellations are not unusual, of course, but they are a sharp reminder that soyabeans are a buyers' market right now," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
Corn rallied even though the USDA reported weekly export sales of old-crop US corn at 817,000 tonnes, at the low end of trade estimates for 800,000 to 1 million tonnes. "We expected much better sales than what we saw," Hoops said. The bearish export sentiment curbed support from recovering crude oil and equity prices. A rise in the dollar after the Bank of Japan stunned markets by adopting negative interest rates also made US grains less competitive overseas. CBOT wheat edged higher. Russia, a leading wheat exporter, is not expected to change its current regime of taxes on grain exports, sources said, following proposals to change them.
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