New York | Reuters — Chicago Board of Trade (CBOT) soybean futures turned higher amid a volatile trading session on Thursday, as commodities traders wrestled with tight domestic supplies and uncertainty over weather impacts on the current U.S. crop.
Analysts said that market participants are focusing on how the recent extreme heat waves across the U.S. may have impacted soybean pod weights — which in turn could affect harvest yield totals.
“There’s still questions about what those yield numbers will be,” said Darin Fessler, senior vice-president and market strategist for Lakefront Futures in Chicago. “We’re looking to see how tight this balance sheet could get.”
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Traders also are going to be closely watching an August soybean crush report, due out Friday, from the National Oilseed Processors Association (NOPA) for signs that higher processing could cut into stockpiles, Fessler said.
“Right now, with the market, it’s real choppy, and needs some new data. And that will be the crush report tomorrow,” Fessler said.
A Reuters poll of analysts earlier this week forecast a crush of some 167.802 million bushels last month, a drop from July but higher than the same period a year ago.
The benchmark November soybeans contract climbed 0.8 per cent, or 10-3/4 cents, to settle at $13.60-1/2 a bushel (all figures US$).
CBOT wheat futures eased as the U.S. dollar rallied and investors grabbed profits off a small two-day bounce that lifted wheat briefly off a three-month low.
“We’re seeing a return to investment traders buying proteins, and selling grains,” said Mike Zuzolo, president of Global Commodity Analytics in Atchison, Kansas.
Corn followed wheat down, after the U.S. Department of Agriculture reported export sales of U.S. corn in the week ended Sept. 7 at 753,400 metric tonnes for shipment in the 2023-24 marketing year, in line with trade expectations for 500,000-1.1 million tonnes.
The most active CBOT wheat contract ended down 0.6 per cent, settling at $5.93-3/4 a bushel; CBOT corn settled down 0.36 per cent at $4.80-1/2 a bushel.
— Zachary Goelman is a multimedia journalist for Reuters in New York.
