Chicago | Reuters—Chicago soybean futures rose on Tuesday, bouncing back from a four-month low on technical trading, while corn and soy futures also firmed as traders turned their attention toward a U.S. Department of Agriculture data release and weather concerns, analysts said.
A weaker dollar also made dollar-dominated commodities cheaper for holders of other currencies, strengthening futures.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 settled up 9-3/4 cents at $9.92-3/4 a bushel. The contract hit its lowest since December 20 on Monday before closing higher.
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CBOT corn Cv1 ended up 4-1/2 cents to $4.69 a bushel and CBOT wheat Wv1 climbed 3-1/2 cents to end at $5.40 a bushel.
U.S. President Donald Trump’s tariff announcement last week sparked a rout in shares and crude oil as investors took the view that the risk of recession had increased and demand for commodities could shrink.
Further threats by Washington and Beijing of more retaliatory tariffs escalated tensions, with soybean futures particularly affected, though markets took comfort this week in the readiness of some U.S. trading partners, including Japan and the European Union, to negotiate, according to analysts.
Grains and oilseeds made a recovery on Tuesday after heading into oversold territory, said Karl Setzer, partner with Consus Ag Consulting.
Traders also positioned ahead of the USDA’s upcoming supply and demand report, due on Thursday, and assessed the impact of heavy rains and flooding that struck the central U.S. in recent weeks, analysts said.
Corn has fundamental support with the USDA expected to tighten ending stocks as corn exports increase, said Brian Hoops, president at Midwest Market Solutions.
Rains and cool temperatures are also expected to slow drying in much of the Midwest and Plains, according to Commodity Weather Group, underpinning corn and wheat.
Tariff news aside, said Setzer, those factors “remind us that the fundamentals do come into play.”
—Additional reporting by Gus Trompiz in Paris and Ella Cao and Lewis Jackson in Beijing
