New-crop US soyabean futures early on Thursday rebounded from a contract low set earlier in the session, while new-crop corn topped a one-week high in a recovery from recent losses. Prices advanced after coming under pressure from expectations that US crop yields will surpass government forecasts issued on Tuesday because of favourable weather in the Midwest.
"Light short covering in thin trade is taking place," said Karl Setzer, grain solutions team leader for MaxYield Co-operative in Iowa. Chicago Board of Trade November soyabeans gained 1 percent to $10.57 a bushel by 10:20 am CDT (1520 GMT) after earlier touching a contract low of $10.38-3/4. December corn advanced 0.7 percent to $3.72-1/2 a bushel, after reaching a contract low of $3.58 on Tuesday.
Traders hold limited concerns about US crop weather amid talk about pockets of dry land in the Corn Belt and about areas of the Midwest and northern Plains that need warm temperatures through autumn to achieve good yields, Setzer said. Uncertainty about the weather "will keep a certain level of risk premium in the market through the remainder of the growing season," he said. Still, many analysts expect the US Department of Agriculture will increase its harvest estimates for soya and corn in the coming months.
The USDA, in its monthly supply/demand report on Tuesday, put the US soyabean crop at a record 3.82 billion bushels, near trade expectations, and the US corn harvest at a record 14.032 billion bushels, below the analyst consensus of 14.253 billion. US soyabean export sales last week were 1.143 million tonnes, above expectations for 850,000 to 1.05 million tonnes. Weekly export sales of 670,700 tonnes of US corn were within expectations of 600,000 to 900,000 tonnes, while wheat export sales of 338,700 tonnes were below estimates of 450,000 to 650,000 tonnes. CBOT December wheat was up 0.8 percent at $5.50 a bushel in a turnaround from a five-day fall.