CHICAGO: US soybean futures rose on Friday, on track for their second straight weekly gain, bolstered by signs of strong export demand, traders said.
Wheat futures were mixed, with winter wheat contracts easing while spring wheat contracts firmed amid concerns about crop shortfalls. Corn was close to unchanged.
U.S. soybeans were priced at a strong discount to supplies from Brazil, prompting a pick-up in demand from many countries even as China, the world’s top buyer of the oilseed, continues to shun deals with the United States amid a trade fight.
Additionally, some traders said China will be forced to pick up some U.S. soybeans to meet its needs in the coming months.
“Soybean exports continue to roll despite the trade skirmishes and the trade knows China has to come crawling back at some point,” Matt Zeller, director of market information at INTL FCStone said in a note to clients.
At 11:18 a.m. CDT (1618 GMT) Chicago Board of Trade soybeans for November delivery were up 5-1/2 cents at $8.81-1/2 a bushel.
The most active contract was up 2.0 percent for the week. Soybean futures have not risen for two weeks in a row since early March.
Soybean exports have been a bright spot in the U.S. economy. Commerce Department data released on Friday showed that the U.S. economy grew at its fastest pace in nearly four years in the second quarter as consumers boosted spending and farmers rushed shipments of soybeans to China to beat retaliatory trade tariffs before they took effect in early July.
CBOT September soft red winter wheat futures were down 5-1/2 cents at $5.31 a bushel and K.C. September hard red winter wheat was down 3 cents at $5.31 a bushel. But MGEX September spring wheat futures were 5 cents higher at $5.92-3/4 a bushel.
Scouts on an annual crop tour of North Dakota, the top U.S. spring wheat producer, found below-average harvest potential in this year’s crop, with hot weather likely curbing production and falling well below the USDA’s projection for record-tying yields.
World wheat production is set to fall to a five-year low following significant downgrades to crop prospects in the European Union and Russia, the International Grains Council said on Thursday.
CBOT September corn futures were 1/4 cent lower at $3.61-1/4 a bushel.
Source: Brecorder
