CHICAGO- Chicago Board of Trade soybean futures jumped on Friday on short covering before a long weekend, a day after slumping to a three-year low, analysts said.
Corn futures set a three-year low for the third consecutive session under pressure from large supplies, while wheat futures extended losses to a 2-1/2-month low.
Traders digested forecasts for US crop inventories to swell in 2024/25 and also adjusted positions before the three-day holiday weekend. The CBOT will be closed on Monday for Presidents Day.
“The soybean market is quite oversold,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage.
Most-active CBOT soybeans settled up 10 cents at $11.72-1/4 per bushel, after falling on Thursday to the lowest price since December 2020 at $11.60-1/4.
CBOT corn closed down 1-1/4 cents at $4.16-1/2 a bushel, after touching its lowest level since December 2020 earlier on Friday at $4.15.
The USDA’s chief economist said this week that US soybeans would face slowing demand from top importer China and steep competition from South America. Beneficial rain for crops in Argentina and Brazil have tempered worries about heat and drought losses.
“The better weather in South America, along with declining US exports, leaves traders with little reason to buy soybeans in the short run except for short-term profit-taking,” Pfitzenmaier said.
The USDA said on Thursday that US soybean ending stocks would climb to 435 million bushels in 2024/25, the highest since 2019/20, and US corn stocks would balloon to 2.532 billion bushels, the most since the 1987/88 season.
Market reaction to the projections may fade as traders await clearer evidence of US planting trends and look ahead to more detailed 2024/25 forecasts, Commerzbank said. – Reuters