Chicago | Reuters — Chicago Board of Trade soybean futures settled higher on Thursday on steady U.S. export demand and weakness in the dollar, analysts said.
Traders also continued to monitor South American weather after forecasts for beneficial rains in dry areas of Brazil pressured futures over the previous two sessions.
Crop losses in South America could benefit U.S. soy export sales as Brazil and the U.S. compete for business on the global market.
“We will continue to trade on the weather pendulum in Brazil,” said Nick Paumen, commodity broker for CHS Hedging.
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The most actively traded CBOT soybeans rose 6-1/2 cents to end at $13.14 per bushel.
The dollar tumbled broadly for a second day in a move that makes U.S. farm products look more attractive to importers.
The U.S. Department of Agriculture said in a daily reporting system that exporters sold 400,000 metric tons of U.S. soybeans to unknown destinations. It was the seventh consecutive session in which the USDA announced a daily soybean sale.
Analysts said there was talk in the market about China buying a couple more cargoes of U.S. soy for delivery early next year.
“The trade is still uncertain about how much U.S. export sales will be helped by the Brazilian weather problems beyond the immediate needs in the Jan-Feb period,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage.
Some much-needed showers will arrive in the northern third Brazil’s crop areas late next week, after hot, dry weather this week, forecaster Commodity Weather Group said.
In Argentina, farm associations met with the new government to analyze planned tax hikes that would affect exports of corn and wheat, several agricultural groups said.
CBOT wheat Wv1 closed 10-1/2 cents higher at $6.15-3/4 per bushel, while corn Cv1 slipped 1/4 cent to $4.79-1/4 a bushel.
On Friday, a monthly National Oilseed Processors Association report is expected to show the U.S. soybean crush set a November record but slowed from an all-time high in October, analysts said.
–Additional reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.
