Chicago soybeans edged higher on Wednesday with the market recovering after two days of falls but the harvest of an all-time high crop in Brazil capped gains in the market.
Wheat resumed its uptrend, rising for six out of seven sessions as fund buying supported prices.
The Chicago Board of Trade most-active soybean contract rose 0.1 percent to $10.46-1/4 a bushel by 0338 GMT. It closed down 0.9 percent on Tuesday, after touching its lowest since Feb. 8 at $10.42-1/2 a bushel.
Wheat climbed 0.4 percent to $4.51-1/4 a bushel, edging closer to Monday’s seven-and-half month high of $4.56 a bushel. Corn rose 0.1 percent to $3.74-1/2 a bushel, having ended the last session down 0.3 percent.
“There is a slight uptick in soybean prices but South American crop outlook is pretty good and it is going to put downward pressure on prices,” said Phin Ziebell, agribusiness economist at National Australia Bank.
“For wheat, soil moisture in the U.S. is favourable for the crop. There are some small concerns in the Black Sea region but overall the crop looks good. Russia is going to have a huge harvest, so it is pretty hard to see much upside potential.”
Soybean prices have been pressured by expectations of bumper harvests in Brazil and Argentina that will boost competition for U.S. supplies.
Brazil soybean industry group Abiove said it expected local production of the oilseed to hit 104.6 million tonnes in 2016/17, up from its December forecast of 101.7 million. It pegged the country’s soybean exports at 58.7 million tonnes.
U.S. farmers have made advance sales of up to half the soybeans they expect to harvest this year, looking to get ahead of the expected record South American crop.
Wheat is being boosted by fund buying although ample supplies are expected anchor prices.
The Commodity Futures Trading Commission’s weekly commitments of traders report showed that non-commercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat in the week to Feb. 7.
In news, Australian grain exports likely surged to an all-time monthly high of more than 4 million tonnes last month, smashing the previous record by a third on strong demand from Saudi Arabia, China and India and lower prices amid a bumper crop.