Chicago | Reuters — Chicago Board of Trade soybean futures firmed for a second straight session on Tuesday amid thin technical trading, as strong domestic demand eased concerns about supplies growing as the U.S. harvest continued.
Corn inched down while traders monitored the U.S. harvest progress, as investors watched Israel’s war with Palestinian militant group Hamas and awaited a speech on Thursday by Federal Reserve chair Jerome Powell.
Meanwhile, wheat eased further amid renewed pressure from large Black Sea supplies, traders said.
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The CBOT’s most-active soybean contract settled up 10-1/2 cents at $12.96-3/4 a bushel. CBOT corn settled down one cent at $4.89 a bushel, and wheat ended down 6-3/4 cents at $5.70-1/2 a bushel.
Industry data released on Monday showed monthly U.S. soybean crush at its highest-ever level for September, and end-of-month soyoil stocks at their lowest in nearly nine years.
“That nine-year-low has this market a little bit worked up,” said Karl Setzer, partner at Consus Ag Consulting.
Still, soybean futures on Tuesday were pressured by U.S. Department of Agriculture crop data released after Monday’s close. U.S. farmers had harvested nearly two-thirds of their soybean crop by Sunday, above a range of analyst estimates, while soybean condition ratings also improved, USDA’s weekly data showed.
Traders also said they were keeping an eye on South America’s market. While China’s recent soybean buying continues to lag behind its normal seasonal pace, traders said they were also weighing whether strength in Brazil’s currency could make South American supplies less competitive in the short-term.
“Buyers hope that a favorable start to Brazil’s growing season will reduce the inverse in the price structure to make Brazilian beans more competitive again, which would lead them to increase purchases for December and January shipment,” Arlan Suderman, chief commodities economist for StoneX, wrote in an analyst note on Tuesday.
— P.J. Huffstutter reports on agriculture and agribusiness for Reuters from Chicago. Reporting for Reuters by Gus Trompiz in Paris and Naveen Thukral in Singaore; additional reporting by Julie Ingwersen in Chicago.
