Chicago soybean futures gained more ground on Wednesday, buoyed by strong demand as China eases COVID-19 curbs and dry weather in Argentina supports the market.
Wheat prices are facing headwinds from ample supplies with the market trading near last session’s 13-month low.
“Without a major shift in the weather pattern in Argentina, buyers are likely to remain active as the market builds a weather premium,” Hightower said in a report.
The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.2% to $/4 a bushel, as of 0403 GMT. Wheat was down 0.3% at $7.27 a bushel, after dropping to its lowest since Oct. 2021 on Tuesday at $/2 a bushel and corn lost 0.2% to $/4 a bushel.
The U.S. Department of Agriculture announced that U.S. exporters sold 264,000 tonnes of soybeans for delivery China, as well as 240,000 tonnes to unknown destinations, both during the /2023 marketing year.
China imported 7.35 million tonnes of soybeans in November, down 14% from a year earlier, customs data showed on Wednesday, confounding expectations for a significant rise, after slow clearing of cargoes at customs.
Chinese demand for soybeans and other commodities is expected to recover as easing of COVID-19 quarantine rules is boosting demand.
Prolonged drought has left over a third of early planted soybeans in Argentina’s core farming region in regular to poor condition, the Rosario grains exchange said late Thursday, adding more dry and hot weather was expected in the days ahead.
The wheat market is being weighed down by ample Black Sea supplies.
Pakistan bought 950,000 tonnes of wheat on Monday, with Russian supplies expected to dominate. Russian wheat export prices fell last week amid a record domestic harvest. A record wheat harvest is expected in Australia.
Soft wheat exports from the European Union in the /23 season that started in July had reached 14.49 million tonnes by Dec. 4, up 3.5% from 14.00 million by the same week in /22, weekly data published by the European Commission showed on Tuesday.
Commodity funds were net buyers of CBOT soybean and soymeal futures contracts on Tuesday and net sellers of soyoil, wheat and corn wheat futures, traders said.
