Chicago | Reuters — U.S. soybean futures jumped 1.6 per cent on Wednesday, their third straight day of gains, as the U.S. government’s forecast for smaller-than-expected plantings of the oilseed continued to fuel buying.
Corn and wheat also rose, rebounding from sharp losses on Tuesday as bargain buyers stepped in despite huge global supplies. A round of short covering also lent support.
Soybeans hit their highest in nearly three weeks.
“We are still digesting the report a little bit,” said Jason Britt, president of Central States Commodities. “We went into the report leaning on the bear side of things.”
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Chicago Board of Trade soybean futures for May delivery settled up 16-1/2 cents at $9.89-3/4 a bushel (all figures US$). Prices broke through key resistance at their 50-day moving average, which spurred buying by investment funds, traders said.
Gains in the crude oil market spilled over to the agricultural sector and added to the bullish tone around the soy complex.
CBOT corn for May delivery rose 5-1/2 cents to $3.81-3/4 a bushel, rebounding from a 4.6 per cent loss on Tuesday.
CBOT May soft red winter wheat ended up 16-3/4 cents at $5.28-1/2 a bushel.
Concerns about dryness in the U.S. Plains limiting crop production in that key growing area added to the strength in wheat.
“This is rapidly becoming a weather market, since there is nothing to look forward to on the demand side to close the season,” said Charlie Sernatinger, global head of grain futures at ED+F Man Capital Markets.
“In any case, we are entering now the critical yield determining phase of the wheat plant in the Northern Hemisphere.”
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Michael Hogan in Hamburg and Naveen Thukral in Singapore.
