Chicago | Reuters — U.S. soybean futures rose on Tuesday on reminders of fresh export demand, extending a modest rebound from multi-month lows set last week, traders said.
Wheat futures drifted lower after a long U.S. holiday weekend while corn ended steady to slightly higher, with the benchmark December corn contract settling unchanged.
At the Chicago Board of Trade, November soybeans ended up 7-1/4 cents at $9.59-3/4 per bushel (all figures US$). December corn closed flat at $3.28-1/2 a bushel and December wheat settled down 3/4 cent at $3.98-1/2 a bushel.
Soybeans drew support from a U.S. Department of Agriculture report showing export inspections of U.S. soybeans in the latest week at 1,232,739 tonnes, above a range of trade expectations for 700,000 to 950,000 tonnes.
“Export shipments of corn and soybeans were strong last week, according to this morning’s data, providing a lift for soybean prices,” INTL FCStone chief commodities economist Arlan Suderman wrote in a note to clients.
Soybean futures have risen for three straight sessions since the November contract fell to $9.37 a bushel last week, its lowest since April, pressed by projections for a record-large U.S. harvest.
INTL FCStone on Friday raised its forecast of the average U.S. 2016 soybean yield to a record 50.1 bushels per acre, from its August figure of 48.8.
The firm also raised its forecast of the average U.S. 2016 corn yield to 175.6 bushels per acre, which would be a record high if realized, from 175 in its previous monthly report.
Expectations of big U.S. soy and corn crops continued to hang over the market, with corn harvest just getting started in the southern Midwest.
After the CBOT close, USDA in a weekly crop progress report rated 74 per cent of the U.S. corn crop in good to excellent condition, in line with trade expectations and down from 75 per cent the previous week.
The government has not yet issued a national figure for corn harvest progress, but state reports pegged the harvest as one per cent complete in Illinois and eight per cent complete in Missouri.
USDA rated the U.S. soybean crop as 73 per cent good to excellent, unchanged from last week. Analysts had expected a slight decline in ratings.
Front-month CBOT wheat ended down after a two-session bounce but held above 10-year lows set last week.
— Julie Ingwersen is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Naveen Thukral and Sybille de La Hamaide.