Wednesday, February 1

Soybeans firm on demand optimism, wheat faces pressure from Black Sea supplies


Article content

SINGAPORE — Chicago soybean futures

ticked higher on Thursday, gaining more ground as expectations

Article content

of demand recovery from top importer China, amid easing COVID-19

curbs and dryness in Argentina, underpinned the market.

Wheat dipped after last session’s strong gains as prices

were weighed down by record Russian supplies, while corn firmed.

“Talk of improving demand from China plus further

indications of dry soils in Argentina helped support the

buying,” Hightower said in a report.

Advertisement 2

Article content

The most-active soybean contract on the Chicago Board of

Trade (CBOT) added 0.3% to $14.76-1/2 a bushel, as of 0259

GMT, while wheat lost 0.2% to $4.78-1/4 a bushel.

rose 0.2% to $6.42-3/4 a bushel.

Soybeans are being supported by optimism that easing

COVID-19 lockdown measures in China will fuel further exports.

China’s November imports of soybeans fell 14% on the year to

7.35 million tons, customs data showed on Wednesday, as

Logistics woes in top supplier the United States helped confound

expectations for a significant rise.

Argentina soybean sales surged last week to 74.2% of the

current harvest, helped by a preferential exchange rate, though

sales trailed the totals seen at the same point last year, the

Advertisement 3

Article content

government said Wednesday.

Export demand for US wheat has been strong this week,

though US wheat remains expensive compared to Black Sea

supplies.

Russia-focused agriculture consultancy Sovecon said on

Wednesday that it had raised its forecast for Russia’s 2022/23

July-June wheat exports to 43.9 million tons from 43.7 million

tons due to current active shipments.

Forecasts for a record crop in Australia have also eased

global supply concerns and added weight to US wheat markets.

Commodity funds were net buyers of CBOT wheat, soybean,

soymeal and corn futures contracts on wednesday and net sellers

of soyoil futures, traders said.

(Reporting by Naveen Thukral; editing by Uttaresh.V)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.



financialpost.com