US soyabean futures bucked early profit-taking pressure and rallied to a three-week high on Wednesday on tight US supplies and a stronger cash market. Wheat shed earlier weather-fuelled gains, overcome by technical selling and spillover pressure from a higher dollar and lower outside markets.
Corn futures ended mixed. Profit-taking pressured old-crop values, but new-crop corn contracts gained as the heavy rains across the Midwest grain belt delayed spring planting. The turnaround in soyabeans came amid concerns that export loading delays in South America could steer some global demand to the United States, where supplies are projected to shrink to a nine-year low ahead of the autumn harvest.
Demand from domestic soyabean processors also remains strong, with cash basis levels at several Midwest locations at the highest levels since August. "Soyabean supplies are still generally tight and we're still not turning off demand as quickly as we need to," said Rich Nelson, chief strategist with Allendale Inc.
New-crop soyabean values ended flat to slightly lower as rainy weather around the Midwest further stalled corn planting, which could result in a shift to more soyabean acres. "Rains of 2.0 to 4.5 inches are expected through Friday in the Plains and central Midwest, and another snowstorm is expected from western Nebraska into central and south-west Minnesota," said Commodity Weather Group meteorologist Joel Widenor.
Chicago Board of Trade May soyabeans settled 10-3/4 cents higher at $14.22-1/4 a bushel, a 0.8 percent gain, after rising as high as $14.29-3/4, a level not seen since March 28. Buying accelerated above the contract's 100-day moving average near $14.25, but the rally failed to breach the 50-day moving average of $14.31. New-crop November soyabeans ended 1/2 cent lower at $12.18 per bushel.
CBOT May corn shed 2-3/4 cent to $6.60-1/2 a bushel after gaining more than 2.5 percent in the previous session, the strongest rally in six months. Planting delays helped to lift new-crop December corn 7-1/2 cents, or 1.4 percent, to $5.48-1/4 a bushel. CBOT May wheat closed just 1/4 cent higher at $7.03-3/4 a bushel after earlier hitting a high of $7.15-1/2. Kansas City Board of Trade May wheat also closed just 1/4 cent higher, settling at $7.42 a bushel after peaking at $7.54.