BEIJING- Chicago corn and soybeans futures gained on Wednesday after a higher supply outlook by the US Department of Agriculture (USDA) dragged prices lower overnight.
Wheat futures also edged higher as traders shifted focus to unfavorable weather conditions in Europe and the Black Sea region.
The most-active soybean contract on the Chicago Board of Trade (CBOT) gained 0.14 percent to $10.45 a bushel after dropping 0.57 percent on Tuesday.
“Chicago soybean prices were supported by a weak soymeal basis in South America,” said Johnny Xiang, founder of the Chinese agriculture consulting firm AgRadar Consulting.
Good crush margins in Brazil and Argentina have raised domestic soybean demand for processing into meal and oil, prompting global buyers to turn to US soybean supplies, Xiang said.
In its monthly report on Monday, the USDA projected US soybean and corn end-of-season supplies above market expectations, while cutting Argentina’s corn and soybean production outlook after hot and dry weather wilted crops.
However, global soybean supplies are still expected to be large due to a bumper crop in top producer Brazil, according to traders and analysts.
