Tuesday, 25 August 2015 17:00
PARIS/SYDNEY: US soybeans rebounded off a more than six-year low on Tuesday, helped by China’s decision to cut interest rates, although fears of a cooling economy in the world’s largest buyer of the oilseed kept gains in check.
Chicago Board of Trade November soybeans was 1.3 percent higher at $ 8.85-3/4 a bushel by 1035 GMT, having closed down 1.7 percent in the previous session when prices hit a contract low.
Corn rose more than 1 percent to a near two-week high, also supported by forecasts for smaller than expected US production.
Wheat gained 1 percent despite the US Department of
Agriculture pegging the progress of the spring wheat harvest above market expectations.
“Ultimately we are seeing a reaction to the losses overnight,” said Andrew Woodhouse, grains analyst at Advance Trading Australasia.
Chicago futures extended gains after China cut interest rates and banks’ reserve requirements for the second time in two months after a plunging stock market sent shockwaves around the globe.
Analysts also noted some support from a supply disruption in South America.
Argentine farmers started a five-day crop sales strike on Monday, part of an election-year push in the world’s No. 3 soybean exporter to change policies that they say have killed profits under outgoing President Cristina Fernandez.
The USDA pegged 63 percent of the soybean crop at good to excellent condition, matching analyst expectations.
December corn rose 1.2 percent to $ 3.85 a bushel, after gaining 0.7 percent the session before.
The four-day Pro Farmer Midwest crop tour forecast an average US corn yield of 164.3 bushels per acre, enough to produce a 13.323 billion-bushel crop, the third-largest ever. The forecast was below USDA’s Aug. 12 estimate of 13.686 billion bushels, with average yield projected at 168.8 bushels per acre.
The USDA says 69 percent of the corn crop is good to excellent, in line with market forecasts.
December wheat rose 1 percent to $ 5.13-1/4 a bushel, having closed up 0.8 percent on Monday.
