SINGAPORE: Chicago soybean futures rose for a third consecutive session on Friday, with the market on track for a weekly gain, on support from strong demand for US cargoes. Wheat inched higher, although the market remained under pressure from improved US planting weather. Corn firmed.
“US soybean and corn exports are booming which is providing support to prices,” said one grains trader in Singapore.
“US prices for soybeans, corn and soymeal are among the cheapest in the world right now.”
The most-active soybean contract on the Chicago Board of Trade rose 0.8% to $10.02-3/4 a bushel, as of 0245 GMT, wheat added 0.5% to $5.73-1/2 a bushel and corn gained 0.2% to $4.11-1/2 a bushel.
For the week, soybeans are up nearly 1.5%, rising for the second week in a row and wheat is up 0.7% after losing ground last week.
Corn is down 0.9% after a positive finish last week. Strong export demand is supporting soybean futures despite US farmers harvesting some of the largest crops in history.
The US Department of Agriculture (USDA) confirmed private sales of 150,000 metric tons of US soymeal to undisclosed destinations for delivery in the 2024-25 marketing year that began Oct. 1.
The agency reported export sales of US soybeans and corn in the week ended Oct. 24 at 2.3 million metric tons each. Both were in line with trade expectations.
For wheat, rains hitting the US Plains are providing much-needed moisture to the region, which was hit by dry weather.
Drought was affecting 62% of the US winter wheat crop as of Tuesday, up from 58% a week earlier, according to the US Drought Monitor.
The European Commission on Thursday lowered virtually all its estimates for this year’s grain crops in the European Union, which would lead to much tighter stocks at the end of the 2024-25 season in the 27-member bloc.
In supply and demand data, the Commission put this year’s production of common wheat, or soft wheat, in the EU at 112.6 million metric tons, down two million from a month ago and 10% below the volume produced last year.
Chicago soybeans surrender gains on harvest pressure
Argentine farms planted with corn could surpass the 6.3 million hectares (15.6 million acres) planned for the current crop due to fewer leafhopper insects plaguing the area, after recent harvests sustained major losses due to the bug, a major grains exchange said on Thursday.
Commodity funds were net buyers of CBOT soyoil futures contracts and net sellers of soymeal and wheat contracts on Thursday, traders said. Funds were net even in soybean and corn contracts.