Wednesday, December 6

US soybeans, corn, wheat futures firm after overnight weakness

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CHICAGO — Chicago Board of Trade soybean, wheat and corn futures firmed on Friday, with all three commodities recovering from declines posted during the overnight trading session.

The strength in soybeans stemmed from signs that demand for US supplies remains strong even with newly harvested soybeans from South America available on the marketplace.

Corn futures benefited from position squaring ahead of a closely watched report on US farmers’ planting plans that the government will release next week.

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Wheat futures were rising after three straight days of declines as investors were guarding against rallies stemming from developments in the fighting between Russia and Ukraine.

At 10:58 am CDT (1558 GMT), Chicago Board of Trade May soybean futures were up 6 cents at $17.06-3/4 a bushel.

Private exporters reported the sale of 132,000 tonnes of soybeans to China for delivery in the 2021/22 marketing year, the US Agriculture Department said on Friday morning. It was the third time this week the government has announced a so-called “flash sale” of old-crop supplies.

“US beans are cheaper than Brazil and Argentina going all the way out through September,” said Terry Reilly, senior commodity analyst at Futures International. “With the flash sales, it kind of confirms that US is competitive.”

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CBOT May corn was 4-1/2 cents higher at $7.52-3/4 a bushel and CBOT May wheat was up 4-1/4 cents at $10.90 a bushel.

Wheat had fallen in the previous three sessions, its longest losing streak since before Russia’s invasion of Ukraine that disrupted shipments from those two key global suppliers.

After an initial scramble to replace Ukrainian grain cargoes with other origins like the European Union and India, traders are watching to see how importers manage the ongoing squeeze in international supply. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips, Alison Williams and Jonathan Oatis)