Chicago | Reuters –– Nearby U.S. soybean futures rose after sinking to a four-year low on Wednesday, while corn approached a four-year low set earlier this week on limited demand for old-crop supplies ahead of massive U.S. harvests.
New-crop soybean futures traded near a contract low reached on Tuesday as favourable weather fuelled expectations for bumper U.S. crop yields.
Traders are bracing for the start of the autumn harvest in the Midwest in the coming weeks, with growers in Louisiana and Mississippi already bringing in crops with high yields.
Demand for old-crop grain has eased as buyers are trying to delay purchases until new supplies come in from the fields.
“Favourable U.S. crop weather continues to be the main factor when it comes to prices, which makes markets think yields are higher than estimated,” said Kayla Burkhart, broker for CHS SunPrairie in North Dakota.
Chicago Board of Trade September soybeans rose 10-1/4 cents to $10.85-3/4 a bushel on short covering after dropping to $10.64-1/4, the lowest price for a front-month contract since October 2010 (all figures US$). New-crop November soybeans lost 4-1/4 cents to $10.23-3/4 after setting a contract low of $10.19-3/4 on Tuesday.
CBOT September corn ended flat at $3.56 a bushel after trading as low as $3.52-1/2, the lowest price for the front-month contract since it hit a four-year low of $3.47-3/4 on Aug. 12. December corn settled unchanged at $3.65 a bushel, near Tuesday’s two-week low of $3.61-3/4 a bushel.
CBOT December wheat gained 5-3/4 cents to $5.62-1/4 a bushel on technical buying.
The Taiwan Flour Millers’ Association rejected all offers in a tender for 99,410 tonnes of U.S. milling wheat because prices were too high, traders said.
Taiwan’s MFIG purchasing group, meanwhile, excluded U.S. corn from a tender because it was too expensive.
“Like U.S. wheat, U.S. corn is also getting bypassed in the global export marketplace, which only lets prices drift even lower,” Burkhart said.
USDA is expected to report Thursday that new-crop soybean export sales last week were 750,000 to 1.1 million tonnes and new-crop corn export sales were 450,000 to 850,000 tonnes.
Old-crop corn export sales might be -100,000 to 100,000, and old-crop soy export sales were estimated at -150,000 to zero tonnes, analysts said.
Russia, one of the world’s largest wheat exporters, could harvest a record grain crop this year, allowing it to boost exports to the all-time high and replenish state stocks, the head of Russia’s Grain Union said.
— Tom Polansek reports on ag commodity markets for Reuters from Chicago. Additional reporting for Reuters by Michael Hogan in Hamburg and Naveen Thukral in Singapore.