SINGAPORE, Feb 28: US soybean futures gained more ground on Thursday with Chinese buying supporting prices amid concerns over delays in shipping a record soybean crop from Brazil.
Corn rose for a fourth consecutive session to its highest in more than two weeks as the market was buoyed by tight old-crop supplies while wheat bounced back on hopes of higher demand for U.S. Supplies.
‘The market is realising that supply is very tight and it is going to be a big challenge to get soybeans and corn out of Brazil in time,’ said Victor Thianpiriya, agriculture strategist at ANZ in Singapore.
‘Across wheat and corn markets, tight supply is going to support prices for the first half of the year until South America comes into the market.’
Chicago Board of Trade March corn rose 0.6 percent to $7.13-1/4 a bushel by 0258 GMT, while March wheat added 0.9 percent to $7.10-1/4 a bushel. Soybeans gained 0.2 percent to $14.59-3/4 a bushel.
The soybean market is being underpinned by strong demand led by top importer China and expectations of shipping delays in Brazil, which is in the middle of harvesting a record crop.
The U.S. Department of Agriculture on Wednesday said private exporters had reported the sale of 240,000 tonnes of U.S soybeans, including 120,000 tonnes to China.
Traders said the market is closely watching Brazil’s soybean crop progress for any signs of disruption or transport problems.
The country’s soy industry says it is unable to speed this year’s export flow, which is likely to be chaotic as record production is funnelled through ports that have failed to expand in tandem with grains output.
Soybeans received additional support on bargain hunting after prices fell for three days in a row and shed 2.7 percent of their value during the losing streak.
The wheat market is being buoyed by signs of rising interest from overseas buyers with prices on track for an almost 9 percent in February, the biggest monthly decline since September, 2011.
Saudi Arabia’s state grains authority Grains Silos and Flour Mills Organisation has issued an international tender to purchase 110,000 tonnes of soft wheat and 440,000 tonnes of hard wheat.
Corn prices have been mixed, with the front-month contract firming due to short covering and tight supplies. Deferred corn contracts have faced headwinds amid expectations of large plantings in the United States in the spring, followed by a strong harvest in the fall.
For the month, corn is on track for an almost 4 percent drop, its sixth monthly loss in seven.
Commodity funds bought a net 3,000 CBOT soybean contracts on Wednesday, trade sources said. They were even in wheat and corn.
(AGENCIES)
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