US soyabean futures edged higher on Wednesday on concerns US farmers will not plant enough acres of the oilseed to make up for poor South American harvests. Traders focused on spring plantings and supplies ahead of US Department of Agriculture crop reports due on Friday.
The global soyabean market will tighten unless US farmers plant more, as foreign buyers may shift purchases to the United States from South America due to crop losses from drought. However, US farmers are expected to raise plantings only slightly to 75.4 million acres from 75 million last year, according to a Reuters survey of analysts.
The USDA is expected to project corn plantings will increase 2.8 million acres from last year to 94.7 million acres, the largest since 1944, according to the Reuters poll. Soyabeans for May delivery rose 3-3/4 cents, or 0.3 percent, to $13.73 1/2 a bushel at 10:15 am CDT (15:15 GMT) at the Chicago Board of Trade. May corn slipped 3-1/2 cents, or 0.6 percent, to $6.27-1/4 a bushel. CBOT May wheat was down 3-1/4 cents, or 0.5 percent at $6.36-1/2 a bushel.
Crop forecasters have already slashed estimates for South America's soya harvests, increasing the need for a big crop in the United States. AgRural this week cut its outlook for Brazil's soya crop to 66.7 million tones from 68 million. Still, global demand for soyabeans remains solid.