Chicago | Reuters –– Chicago Board of Trade soybean futures edged higher on Monday on a round of end-of-month short covering while wheat was mixed and corn settled close to unchanged, traders said.
Corn, soybeans and wheat posted monthly losses during August, the second straight month of declines for all three commodities. Expectations that a bumper harvest in the fall will add to an already ample global supply base weighed on grains throughout the month.
For the month, wheat futures dropped 3.1 per cent, soybean futures dropped 8.6 per cent and corn futures fell 1.9 per cent.
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CBOT soft red winter wheat for December delivery ended up 1-1/4 cents at $4.85 a bushel on Monday, snapping a streak of four straight losses on some bargain buying after the front-month contract hit its lowest since May 8 during the overnight trading session (all figures US$).
But light export demand kept the wheat gains in check. No U.S. supplies were offered in two tenders for wheat from Egypt, the world’s biggest buyer of the grain, last week.
CBOT November soybeans ended up two cents at $8.87-1/2 a bushel while CBOT December corn rose 1/4 cent to $3.75-1/4 a bushel.
There was added support from some concerns about dry conditions in parts of the U.S. Midwest hindering the final stages of growth for both corn and soybeans.
“Double-crop soy areas near the Ohio River and into the northern Delta may now have to wait until mid-month to see shower potential expand,” Commodity Weather Group said in a note to clients. “While some stress may develop in the meantime for shallow-rooted fields near the Ohio River, the mid-month rainfall would help to mitigate more notable yield threats.”
Signs of improving export demand also helped soybeans.
The U.S. Agriculture Department on Monday said weekly soybean export inspections totalled 184,285 tonnes, near the high end of trade forecasts ranging from 100,000 to 200,000 tonnes.
USDA also said that private exporters reported a sale of 125,000 tonnes of soybeans to unknown destinations for delivery in the 2015/16 crop year, the fourth flash sale since Aug. 24.
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.
