Soybeans up for 2nd day on tight LatAm supplies, wheat near 6-wk top

Commodities

Chicago soybeans rose for a second session on Tuesday as the market was underpinned by importers locking in U.S. cargoes in the face of tight South American supplies following adverse weather.

Wheat was little changed, trading near last session’s six-week high on concerns over adverse weather threatening European production. “We are seeing pretty bullish moves in soybeans as U.S. old-crop stocks are tightening and importers are rushing to cover supplies,” said Kaname Gokon at brokerage Okato Shoji in Tokyo. “Even for the near U.S. crop, we have seen strong demand.”

Chicago Board of trade most-active soybean contract gained 0.5 percent to $11.43-1/2 a bushel by 0301 GMT, while corn was unchanged at $4.27-1/4 a bushel. Wheat was flat at $5.07-1/2 a bushel. Chicago wheat rallied to its highest since April 21 on Monday on concerns over adverse weather hitting European production.

The condition of cereal crops in France has worsened, farm office FranceAgriMer said on Friday, in a sign that heavy rain is affecting crops in the European Union’s largest grain producer. France’s farm ministry on Monday said wet weather had favoured disease development in rapeseed crops and that other winter crops may see yields suffer in the European Union’s largest grain producer.

Expectations of lower supplies from Argentina continue to support the soybean market. A U.S. Department of Agriculture report last week showed strong demand for new-crop supplies that will be delivered in the fall. U.S. farmers have nearly completed planting corn, the USDA said after the market closed on Monday. It said 75 percent of the crop is in good-to-excellent condition as compared with 72 percent a week ago.

The pace of planting soybeans is running ahead of average, the agency said, adding that 72 percent of the crop is in good-to-excellent condition as compared with 69 percent at this time of last year. Brazil, the world’s second-largest corn exporter, continues to face tight supplies, boosting demand for U.S. supplies on the export market.

The U.S. Department of Agriculture on Monday morning reported weekly corn export inspections of 1.068 million tonnes, up from 786,507 tonnes last week and near the high-end of market forecasts.

Commodity funds were net buyers of CBOT soybean, corn and wheat futures contracts on Monday.

Traders estimated that funds bought a net 15,000 of corn contracts. Estimates of fund buying in soybeans ranged from 6,000 to 14,000 contracts. For wheat, estimates ranged from 5,000 to 7,000.

[reuters]

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