SINGAPORE- Chicago soybeans rose for a second consecutive session on Wednesday as the market continued to recover from a six-month low hit earlier this week, although gains were curbed by expectations of higher global stocks.
Wheat slid for the first time in three sessions, while corn lost ground after Tuesday’s gain.
“Chinese importers are buying as prices are attractive with the fall in Brazilian currency,” said Darin Friedrichs, senior Asia commodities analyst at INTL FCStone in Shanghai.
The most-active soybean contract on the Chicago Board of Trade rose 0.6 percent to $8.81-1/2 a bushel. The market dropped to its weakest since Sept. 11 at $8.67 a bushel on Monday.
Corn fell 0.1 percent to $3.77 a bushel and wheat gave up 0.1 percent to $5.22 a bushel.
Global soybean supplies will be bigger than previously forecast due to increased harvest expectations in Brazil and Argentina, the US government said on Tuesday.
World soybean ending stocks for the 2019/20 marketing year were pegged at 102.44 million tons, according to the US Agriculture Department’s World Agricultural Supply and Demand Estimates report. That compares with the USDA’s February forecast of 98.86 million tons.
Expected rainfall over the next few days in Argentina will bring relief to soybean and corn crops in the country’s central agricultural regions, where both have recently been hit by high temperatures and dry conditions.
Wheat-belt farmers in Australia’s east are rushing to secure seed several weeks before the all-important winter crop planting starts amid hopes that a devastating three-year drought is coming to an end. — Reuters
