HAMBURG: Chicago soybeans rose on Tuesday with prices underpinned by bargain-buying after the market dropped to a one-month low on Monday, with market attention turning to crop development in South American producers.
The weaker dollar also sparked hopes of new US export sales.
Corn and wheat drifted lower, both burdened by prospects of large supplies.
Chicago January soybeans rose 0.1 percent to $9.75-1/4 a bushel at 1140 GMT, having closed down 1.3 percent on Monday, when prices hit a low of $9.73-3/4, their lowest since Oct. 12.
December wheat was down 0.06 percent at $4.24 a bushel, having dropped 1.7 percent on Monday. December corn fell 0.2 percent to $3.41-1/2 a bushel, having dropped 0.4 percent on Monday, still suffering from forecasts of record US crop yields.
Soybeans are seeing some buying interest after their falls on Monday, said Graydon Chong, senior commodity analyst with Rabobank.
“Soybeans have been supported by strong export numbers from the US recently and a weaker dollar would be positive for further US sales,” Chong said.
“For soybeans, attention is turning firmly to weather in the main South American production regions. Markets are reacting strongly to changes in weather especially in Brazil and Argentina, later plantings of crops increases risks of yield downgrades.”
The picture in South America is mixed. Rain has been widespread across north Brazil over the weekend, MDA Weather Services said in a note, adding that additional weather improvements are expected this week.
But mostly dryness is expected next week in Argentina’s main agricultural area, which could delay soybean planting.
“The US crop progress report from the USDA on Monday showed that the US corn harvest is about 8 percentage points behind the 5-year average,” Chong said. “A late, extended harvest period may mean the USDA could cut its estimates of yields in the longer tail of the season as the final acres are gathered.”
The US Department of Agriculture (USDA) said 83 percent of the US corn crop has been harvested, below the average pace of 91 percent.
Large speculators increased their net short position in CBOT corn futures in the week to Nov. 7, US regulatory data on Monday showed.
“On wheat, export competitiveness will be a critical factor in the near future, especially between the US and the Black Sea region before the Black Sea slows down for the winter,” Chong said. “Wheat still has a supply-heavy balance sheet limiting gains, so markets are waiting to see which region will gain export competitiveness.”
Source: Brecorder.com
