PARIS/SINGAPORE: Chicago soybean futures edged higher on Wednesday, steadying above a 2021 low struck a day earlier, as hopes of renewed Chinese demand countered pressure from higher than expected forecasts of US supplies.
Corn edged down, while wheat was largely unchanged.
The most-active soybean contract on the Chicago Board Of Trade (CBOT) was up 0.6% at $12.05-3/4 a bushel by 1106 GMT. On Tuesday, prices hit their lowest since December 2020.
The US Department of Agriculture (USDA) on Tuesday projected a 2021 US soybean crop of 4.448 billion bushels and a yield of 51.5 bushels per acre, above the average of analyst estimates.
“The market is focused on Chinese purchases,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.
“China is expected to come back to the market and buy more soybeans.”
China’s soybean imports in September fell 30% from the previous year, customs data showed on Wednesday, as poor crush margins curbed demand.
However, availability of supplies from the ongoing US harvest are expected to trigger some renewed Chinese demand.
Soybeans rise on tightening edible oil supplies
Rallying vegetable oil prices also lent some support to oilseed markets like soybeans.
Palm oil futures hit a record high on Wednesday after top buyer India slashed its base import tax on edible oils to zero.
CBOT corn was down 0.3% at $5.21 a bushel and wheat inched up a quarter of a cent to $7.34-1/4 a bushel.
Corn remained curbed by the USDA’s revised forecast of the US harvest that was above average trade expectations.
Wheat, meanwhile, had rallied on Tuesday after the USDA forecast global wheat ending stocks at the lowest in five years.
Source: Brecorder
