Chicago | Reuters — U.S. soybean futures rebounded on Tuesday after three sessions of declines on steady export demand and higher soymeal prices, although gains were capped by beneficial rains in dry production areas of Brazil, the world’s top supplier.
Corn futures eased on a bumper U.S. harvest and sluggish export demand. Wheat was mixed, with some contracts lifted by light short covering a day after prices surged around four per cent.
Traders unwound spreads featuring long corn and short soybean positions as the market’s focus turned to slumping U.S. corn exports and news of imports of Brazilian corn arriving soon on the U.S. East Coast. Meanwhile, soybean exports are accelerating.
“The reversal of the spreads is the highlight today. We don’t have the wheat skyrocketing higher today and that Brazilian corn cargo is bringing in spread unwinding,” said Mike Zuzolo, president of Global Commodity Analytics.
Soybeans drew additional support from rallying soymeal futures following a technically strong close on Monday, which kept new soybean short positions at bay on Tuesday, he said.
Harvest pressure and sluggish exports weighed on corn prices. This more than offset support from a strong cash market in the eastern Midwest.
“There’s a little more hedge pressure in the corn today as farmers are moving more toward the end of harvest,” said Karl Setzer, analyst with MaxYield Cooperative.
U.S. farmers finished harvesting 75 per cent of the corn crop as of Sunday while the soybean harvest was 87 per cent complete, both ahead of average, the U.S. Department of Agriculture said on Monday.
U.S. grain warehouses were filling up so fast with a bumper harvest that they were storing soybeans and corn out in the open despite the risk of damage and even refusing crops from farmers without binding contracts.
Chicago Board of Trade November soybeans gained 6-1/4 cents, or 0.7 per cent, to $8.91-1/4 a bushel after dipping below its 50-day moving average around $8.84-1/2. CBOT December corn fell 4-1/2 cents, or 1.2 per cent, to $3.80 a bushel but held near its 50-day moving average.
CBOT December wheat was up 1/4 cent at $5.09-1/4 a bushel after failing to rise above its 100-day moving average around $5.18-1/4. December hard red winter wheat futures fell 4-1/4 cents, or 0.9 percent, to $4.88 a bushel.
— Karl Plume reports on agriculture and ag commodity markets for Reuters from Chicago. Additional reporting for Reuters by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.