SINGAPORE- Chicago soybean futures gained more ground on Wednesday, buoyed by strong demand as China eases COVID-19 curbs and dry weather in Argentina supports the market.
Wheat prices are facing headwinds from ample supplies with the market trading near last session’s 13-month low.
“Without a major shift in the weather pattern in Argentina, buyers are likely to remain active as the market builds a weather premium,” Hightower said in a report.
The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.2 percent to $14.58-1/4 a bushel. Wheat was down 0.3 percent at $7.27 a bushel, after dropping to its lowest since Oct. 2021 on Tuesday at $7.23-1/2 a bushel and corn lost 0.2 percent to $6.36-1/4 a bushel.
The US Department of Agriculture announced that US exporters sold 264,000 tons of soybeans for delivery China, as well as 240,000 tons to unknown destinations, both during the 2022/2023 marketing year.
China imported 7.35 million tons of soybeans in November, down 14 percent from a year earlier, customs data showed on Wednesday, confounding expectations for a significant rise, after slow clearing of cargoes at customs.
Chinese demand for soybeans and other commodities is expected to recover as easing of COVID-19 quarantine rules is boosting demand.
