Chicago | Reuters — U.S. soybean futures ended higher on Monday as the market recovered from its lowest level since early August, while corn and wheat futures also rose.
After trading ended, the U.S. Department of Agriculture reported that soy and corn harvests advanced more slowly last week than analysts expected. The soybean crop was 12 per cent harvested, compared to estimates for 14 per cent, and the corn harvest was 15 per cent complete, compared to estimates for 17 per cent.
Rains delaying harvests over the weekend triggered some short covering in the futures markets, brokers said.
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“At this stage, I would call it a speed bump to harvest,” said Don Roose, president of brokerage U.S. Commodities, before the data was released.
Most-active soybean futures settled up 1-1/2 cents at $12.97-3/4 per bushel at the Chicago Board of Trade after dropping to their lowest price since Aug. 8 (all figures US$). Corn rose four cents to $4.81-1/4 per bushel, while wheat jumped 9-1/2 cents to $5.89 per bushel.
Traders are digesting yield reports from harvested fields, with farmers expected to bring in the second largest corn crop on record.
USDA, in a daily reporting system, said Mexico bought 1,661,160 metric tonnes of U.S. corn.
Traders are awaiting quarterly stocks data due from USDA on Friday and also are monitoring global wheat values.
Major wheat exporter Australia may see production decline further after hot, dry weather, while a lack of rain is slowing sales of Argentina’s upcoming wheat crop. Still, large Russian wheat exports limit global prices, analysts said.
“Wheat continues to face downward pressure from huge export supplies from Russia despite harvest downgrades in Australia and Argentina,” said Matt Ammermann, StoneX commodity risk manager.
A wheat tender last week from Egypt, a top global buyer, showed offers of Russian wheat at $270 per metric tonne, free on board (f.o.b.) before shipping costs. Traders believe that is a current minimum price sought by the Russian authorities for sales in international tenders.
— Reporting by Tom Polansek in Chicago; additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore.
