SINGAPORE- Chicago soybean futures rose for a second session on Tuesday on hopes of increased Chinese demand although gains were capped by expectations of a bumper harvest in Brazil.
Wheat slid for a third session, while corn gained ground after closing lower on Monday.
The most-active soybean contract on the Chicago Board Of Trade was up 0.1 percent at $9.45-1/4 a bushel.
Wheat lost 0.1 percent to $5.49-3/4 a bushel, having closed down 0.8 percent when prices hit lowest since Dec. 26 at $5.46-3/4 a bushel. Corn added 0.1 percent to $3.85 a bushel, having closed down 0.5 percent in the previous session.
“Expectations of Chinese buying are driving soybean little higher, but on the other we have limited supply issues. There are plenty of supplies in the market,” said Phin Ziebell, agribusiness economist at National Australia Bank.
Optimism that China would accelerate purchases of US farm goods remained supportive for crop markets, particularly soybeans, as officials from Beijing are expected to travel to the United States to sign the Phase 1 trade deal.
Abundant world supplies and forecasts of a bumper harvest in Brazil is expected to cap the upside potential in prices.
The US Department of Agriculture attache in Brazil has forecast the country’s soybean production at 123.5 million tons. – Reuters