Chicago | Reuters — Chicago soybean futures climbed on Tuesday, led by rising soybean oil as global edible oil supplies tighten.
Corn futures also moved higher, as traders weighed Brazil’s late-planted second crop against beneficial rains in Argentina. Wheat followed the markets higher, despite much-needed rainfall across the U.S. Plains production belt.
The most-active soybean futures contract on the Chicago Board of Trade added 5-3/4 cents to $14.23-1/4 per bushel (all figures US$).
CBOT corn gained 2-1/4 cents to $5.51-1/4 per bushel, while CBOT wheat added 7-1/2 cents to $6.34-3/4 per bushel.
Overnight, CBOT May soyoil reached 58.25 cents/lb., the highest for a most-active contract since 2012, supported by increased global demand for vegetable oil.
“The demand is there, worldwide, as we come out of the pandemic,” said Chuck Shelby, president of Risk Management Commodities.
Renewable fuel targets set by U.S. President Joe Biden’s administration added support for soyoil, as the policy was seen increasing demand for biodiesel that uses vegetable oils, analysts said.
“There’s a lot of interest that this Biden infrastructure deal will include a whole lot of money for biofuels,” said Jack Scoville, market analyst with The Price Futures Group.
Corn futures rose as traders eyed delays to Brazil’s second-crop corn planting, while recent purchases of U.S. corn by China erode already tight supplies.
Traders are looking ahead to the U.S. Department of Agriculture’s March 31 quarterly stocks and planting intentions reports, with anticipated increased corn acres pressuring deferred-month corn prices.
“We’re staring down a very large U.S. corn acreage number,” said Terry Reilly, senior agriculture analyst at Futures International. “That puts a lot of corn into the market by the end of October, after harvest.”
Wheat followed the grain complex higher, supported by concerns that flooding in Australia could hamper rail lines carrying crops to port.
Rains across the southern U.S. Plains improved crop ratings, pressuring futures, though farmers are still uncertain how extreme cold and dryness impacted crops this winter.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.