CBOT soyabean futures hit two-week high

29 May, 2020

US soyabean futures scaled to a two-week peak on Wednesday on slower-than-expected US plantings and forecasts for more rain in some parts of the Midwest and a longer term dry spell in others.
The benchmark CBOT July soyabean contract touched a high of $8.51-1/4 a bushel, the highest since May 13. The contract failed to break through chart resistance at its 50-day moving average, which triggered technical selling that clipped gains.
Soyameal futures ended lower while soyaoil futures extended gains after a strong rally on Tuesday.
The US Department of Agriculture said late on Tuesday that 65% of the US corn crop was planted, below the average trade estimate for 69%.
More rain is expected in parts of the eastern US Midwest over the coming week, according to meteorologists. Hotter, drier weather is in the outlook beyond next week, which could stress developing crops, particularly in the western Midwest.
Soyabeans drew some support from news that soyabean exports at a berth in Brazil's large Paranagua port were temporarily halted after a ship crew member tested positive for the coronavirus. A bigger disruption could potentially shift more demand to the United States.

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