SINGAPORE- Chicago soybean futures rose for the first time in six sessions on Wednesday, although beneficial rains across Argentina’s crop belt limited the upside potential in prices.
Wheat and corn prices rose for a second session.
“Traders believe the soybean crop can recover more significantly from head and drought…,” commodities research firm Hightower said in a report.
The most-active soybean contract on the Chicago Board of Trade rose 0.1 percent to $14.89-3/4 a bushel. Wheat added 1.1 percent to $7.42-1/2 a bushel and corn gained 0.4 percent at $6.80 a bushel.
More rain is expected across Argentina in the coming week, after the country’s drought-hit farms received widespread rains this week, preventing further damage to the crop.
Wheat rose on bargain-buying, having dropped to a 16-month earlier this week.
Precipitation across the US Plains has recharged soil moisture for drought-affected parts of the winter wheat crop.
Commodity funds were net buyers of CBOT corn and wheat futures contracts on Tuesday, and net sellers of soybeans, soymeal and soyoil futures, traders said.
Meanwhile, while La Nina’s predicted exit within the next couple months could bring relief to parched crop areas in the southern US Plains and Argentina, weather implications for the upcoming US corn crop are not as clear-cut.
La Nina, which arises when surface waters in the equatorial Pacific Ocean are cooler than normal, may soon fade out, making way for average or even warmer conditions to form toward mid-2023. That mildly increases the chance of a bountiful US corn crop, but a disaster cannot be ruled out. — Reuters
