CBOT soybeans end firm on short covering, US Midwest dryness

CHICAGO: Chicago Board of Trade (CBOT) soybean futures settled slightly higher on Wednesday on short covering as dry conditions in parts of the US Midwest crop belt stoked worries about a smaller US harvest, traders said.

* CBOT August soybeans ended up 1 cent at $8.48-3/4 a bushel while new-crop November soybeans rose 1 cent to $8.66-3/4 a bushel.

* CBOT September soymeal declined $2.30 to $295.00 per short ton. September soyoil rose 0.45 cent to 28.01 cents per pound.

* Fears that a prolonged trade war with China would limit export opportunities for crops that will be harvested in coming weeks pressured soy prices.

* Dry weather in parts of the eastern US Midwest elevated concerns about lower yields. Crop conditions are already below normal following excessive rains during spring planting.

* Traders are beginning to square positions ahead of next week's US Department of Agriculture (USDA) supply-and-demand report, which is expected to show a smaller crop and fewer planted acres.

* The USDA said private exporters sold 165,000 tonnes of US soybeans to unknown destinations for delivery in the 2019/20 marketing year that begins Sept. 1.

* The USDA is due to report weekly export sales totals on Thursday morning. Old-crop soybean sales were seen at 0-300,000 tonnes and new-crop sales were expected at 100,000-400,000 tonnes.