US soyabean futures rebounded on Tuesday after three sessions of declines on steady export demand and higher soyameal prices, although gains were capped by beneficial rains in dry production areas of Brazil, the world's top supplier. Corn futures eased on a bumper US harvest and sluggish export demand. Wheat was mixed, with some contracts lifted by light short covering a day after prices surged around 4 percent.
Traders unwound spreads featuring long corn and short soyabean positions as the market's focus turned to slumping US corn exports and news of imports of Brazilian corn arriving soon on the US East Coast. Meanwhile, soyabean exports are accelerating. "The reversal of the spreads is the highlight today. We don't have the wheat sky-rocketing higher today and that Brazilian corn cargo is bringing in spread unwinding," said Mike Zuzolo, president of Global Commodity Analytics.
Harvest pressure and sluggish exports weighed on corn prices. US farmers finished harvesting 75 percent of the corn crop as of Sunday while the soyabean harvest was 87 percent complete, both ahead of average, the US Department of Agriculture said on Monday. US grain warehouses were filling up so fast with a bumper harvest that they were storing soyabeans and corn out in the open despite the risk of damage and even refusing crops from farmers without binding contracts.
Chicago Board of Trade November soyabeans gained 6 cents, or 0.7 percent, to $8.91 a bushel by 11:26 am CDT (1626 GMT) after dipping below its 50-day moving average around $8.84-1/2. CBOT December corn fell 4 cents, or 1 percent, to $3.80-1/2 a bushel but held near its 50-day moving average. CBOT December wheat was up 2-1/2 cents, or 0.5 percent, at $5.11-1/2 a bushel after failing to rise above its 100-day moving average around $5.18-1/4. December hard red winter wheat futures fell 2-1/2 cents, or 0.5 percent, to $4.89-3/4 a bushel.