Chicago | Reuters – U.S. soybean futures Sv1 rose for a second straight session on Tuesday on technical buying and short covering after notching multi-year lows last week, although lacklustre demand and improved crop weather in top exporter Brazil limited gains.
On the Chicago Board of Trade (CBOT), wheat Wv1 ended flat and corn Cv1 posted modest gains as dull demand and plentiful supplies anchored prices and offset technical buying and short covering support.
“We got a little bit of a technical bounce off the $12 (per bushel) mark in soybeans and that’s alleviating the over-sold condition in the market,” said Ted Seifried, chief market strategist for the Zaner Group.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
However, rallies were capped by expectations for a large South American soy harvest. While analysts have cut forecasts for Brazil’s soybean and corn crops due to earlier drought, improved rainfall could limit losses there. And Argentina is on course for a bumper harvest.
Meanwhile, demand remains a concern, particularly for U.S. supplies of the oilseed.
“China is not buying U.S. soybeans aggressively,” Seifried said.
CBOT March soybeans SH24 settled up 15-1/4 cents at $12.39-1/2 per bushel in a further rebound from last week’s drop to $12.01, which was the lowest for a most-active contract Sv1 since November 2021.
CBOT March corn CH24 ended 3/4 cent higher at $4.46-1/2 a bushel after hitting overhead resistance at its 10-day moving average.
CBOT March wheat WH24 settled unchanged at $5.96-1/2 per bushel, erasing gains after rising to a one-week high at $6.06-3/4.
In corn, attention was turning to planting for Brazil’s second annual crop. Forecasters expect lower production from Brazil’s second corn crop, reflecting a smaller planted area.
Doubts over Chinese demand were also hanging over the market, with Brazilian supplies posing stiff competition to U.S. soy and corn.
–Additional reporting for Reuters by Gus Trompiz in Paris and Naveen Thukral in Singapore.
