SINGAPORE- Chicago soybean futures rose on Wednesday as prices were supported by concerns over dry weather curbing yields in key South American suppliers Brazil and Argentina.
Wheat slid for a second session as Russia-Ukraine tensions eased.
The-most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.5 percent at $15.59-1/2 a bushel.
Wheat added 0.6 percent to $7.84 a bushel and corn gained 0.3 percent at $6.40 a bushel.
Brazilian soybean farmers are expected to produce 125.8 million tons of soybeans this season, 8.4 million tons less than forecast ahead of a crop tour of key producing regions in Brazil, some of which have been hit by a severe drought.
Argentina’s farm belt is set for days of hot and dry weather ahead, weather experts said on Tuesday, stoking fears among grains farmers whose corn and soy crops are in sore need of rainfall after spells of drought.
Wheat fell as Moscow’s announcement that some of its troops were returning to base after drills tempered investor fears of a Russian invasion of Ukraine that could disrupt Black Sea export flows.
Commodity funds were net sellers of Chicago Board of Trade corn, soybeans, wheat, soymeal and soyoil futures contracts on Tuesday, traders said.
Meanwhile, record volumes of lower quality wheat from India and Australia are set to fill a gap left in Asia’s animal feed market by a shortage of corn exports from South America, where drought is expected to reduce output, traders and analysts told Reuters. — Reuters
