SINGAPORE: Chicago soybeans ticked higher on Friday, with support from strong demand and dryness in South America, but gains were limited amid concerns over a slowing global economy.
Wheat rose and the market was set for a weekly gain on bargain buying after prices dropped to a two-month low last week, while it is on track to end the week on a positive note.
“Weak economic data and a stronger US dollar weighed on sentiment across commodity markets,” ANZ said in a report.
The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.2% to $14.76 a bushel, as of 0426 GMT, wheat gained 0.3% at $7.59-1/2 a bushel and corn rose 0.1% to $6.54-1/4 a bushel.
For the week, soybeans are down around half a percent, wheat has added more than 3% and corn is up 1.5%.
Gains in agricultural markets are being limited by fears of a global recession.
A day after the US Federal Reserve said it expected rates to stay higher for longer, US retail sales fell more than expected in November, while the labour market remained tight.
The Bank of England similarly pointed to more possible rises as it also increased rates on Thursday.
China’s November imports of soybean drop 14% on year
The safe-haven dollar held just below the month’s high against the yen on Friday and maintained overnight gains versus other peers amid growing worries that continued monetary tightening at the world’s biggest central banks could trigger a recession.
The US Agriculture Department said on Thursday morning that export sales of soybeans totalled 2.943 million tonnes in the week ended Dec. 8.
That was up 69% from a week earlier and above the high end of trade forecasts that ranged from 1.5 million to 2.6 million tonnes Rainfall over recent days has not been enough for successful planting of soybeans after an extended drought in Argentina’s core agricultural areas, the Buenos Aires grains exchange said on Thursday.
European Union production of major cereal crops should rise next year after a 2022 harvest marked by drought and heatwaves, consultancy Strategie Grains said on Thursday.
In initial projections for the 2023 harvest, Strategie Grains forecast soft wheat production at 128.7 million tonnes, up 2.5% from 125.5 million this year.
For maize, it anticipated output would recover to 63.7 million tonnes, up 26% from a 15-year low of 50.5 million for 2022.
Commodity funds were net buyers of CBOT corn, wheat and soyoil futures contracts on Thursday and net sellers of CBOT soybeans and soymeal, traders said.
Source: Brecorder
