US MIDDAY: soyabeans rise

07 Nov, 2017

US soyabean futures rose on Monday for the third time in four sessions on expectations that the government will cut its US crop yield estimate in a monthly report this week and on concerns about slow planting in Brazil. Corn and wheat futures also rose, supported by technical buying and short covering after weekly Commodity Futures Trading Commission data late last week showed large speculators had increased their bearish bets in the two commodities.
Traders focused on the US Agriculture Department's monthly crop supply and demand report scheduled for release on Thursday. Analysts, on average, expect the government to raise its US corn yield forecast and trim its soyabean yield outlook. Planting of soyabeans in Brazil, the world's biggest exporter, is lagging the normal pace following heavy rains in central and southern areas and dry conditions in top soya state Mato Grosso. Chicago Board of Trade January soyabeans gained 7-3/4 cents, or 0.8 percent, to $9.94-1/2 a bushel by 12:06 p.m. CST (1806 GMT).
CBOT December corn rose 3/4 cent to $3.49 a bushel while CBOT December wheat added 3-3/4 cents to $4.29-1/2 a bushel. CFTC data late last week showed non-commercial traders widened their net short holdings in the week ended Oct. 31 to the largest since June and increased their corn net short position to the biggest since March 2016. Export sales announcements offered additional support to both markets after the USDA confirmed a 130,000 tonne corn sale on Monday and Iraq's government confirmed it bought 500,000 tonnes of US hard red winter wheat.

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