Chicago soybeans rose to a five-week high on Wednesday on strong demand, despite large new supplies looming as a huge soybean harvest in Brazil gathered speed. Wheat rose on support from bitterly cold weather in US grain belts and Egypt's plans to buy US wheat in a snap tender on Wednesday. Corn was weaker, lacking new impetus.
Chicago Board of Trade March soybeans rose 0.02 percent to $10.08 a bushel at 1202 GMT after touching $10.12-1/4 earlier on Wednesday, a high since January 15. Soybeans closed up 1.7 percent and above the $10 level on Tuesday. March wheat climbed 0.4 percent to $5.37-1/4 a bushel, having closed up 0.3 percent on Tuesday when prices hit a near one-month top of $5.48. Corn was down 0.4 percent at $3.87-3/4 a bushel, having gained 0.5 percent on Tuesday.
"Soybeans are being supported by strong demand, wheat is gaining after the cold weather in parts of the United States," said Stefan Vogel, head of agricultural commodity markets research at Rabobank. "The cold weather and snow could cause logistics difficulties which could create some short-term problems for soybeans, soymeal and corn supplies in coming days." "But snow cover for wheat in the US Midwest has increased so I do not currently view the danger as very severe to wheat plants."
"Soybeans are seeing support from the large US crushing numbers on Tuesday when we also saw underpinning from strong soymeal prices and hopes of more exports, especially to China." The US National Oilseed Processors Association said on Tuesday the US soybean crush was 162.675 million bushels in January, the biggest ever for the month. An arctic blast hitting the heart of the US Midwest soft red winter wheat belt this week will put 10 to 15 percent of the dormant crop at risk of winterkill damage, agricultural meteorologists said.
Brazil's 2014-15 soybean crop, now arriving on the market and expected to be a record size, is 38 percent sold, up from 32 percent a month ago, but well behind the 58 percent sold this time last year, analysts Safras e Mercado said. "I remain fundamentally bearish on soybeans with a large Brazilian soy crop now arriving," Vogel said. "After the Chinese and Asian Lunar New Year holidays we are likely to see significantly more Brazilian export activity." The wheat market was supported by demand from Egypt, the world's biggest buyer. Egypt's General Authority for Supply Commodities set a tender on Tuesday to buy an unspecified amount of US-origin wheat for April 10-20 delivery.