Soybeans up on Brazil planting delay

Soy-Beans

U.S. soybeans rose for a second session on Monday with prices underpinned by planting delays in top producer Brazil and strong demand in China providing additional support to the market.

Wheat was little changed after notching its biggest weekly gain in four months on concerns about adverse weather in Australia and the Black Sea region.

Chicago Board of Trade November soybeans rose 0.3 percent to $8.86-1/2 a bushel by 0232 GMT, after firming 0.6 percent on Friday. December wheat was unchanged at $5.22 a bushel, after closing up 1.4 percent on Friday when prices hit a three-week top of $5.23-1/2 a bushel. December corn fell 0.2 percent to $3.81-1/2, after closing 0.6 percent higher.

“Wheat prices had a strong run amid rising weather concerns, with deteriorating weather conditions in Australia and the Black Sea region supporting the prices,” ANZ said in a note to clients. Australia’s wheat crop could face quality downgrades as parts of the country’s eastern grain belt are forecast to receive heavy rains, potentially damaging the crop which is ready for harvest. Dry weather in September and above average temperatures this month have already curbed yields of high-protein Australian prime hard wheat in the world’s fourth-largest exporter of the grain. Flour mills in Indonesia have made enquiries about buying Russian wheat for January shipment because of concerns for the crop in Australia, the country’s traditional supplier, traders said. A lack of rains in parts of the U.S.

Plains, Russia and Ukraine have already raised worries about winter crop yields. For soybeans, there are issues emerging about Brazilian planting. Soybean planting in Brazil remained behind the historical average even after isolated rainfall in the center-west, analyst firm AgRural said on Friday, with 31 percent of area planted compared to the 42 percent five-year average.

China’s soybean imports are likely to reach 22 million tonnes in the fourth quarter, up 18 percent on a year ago, an official think-tank estimate published on Friday said, indicating healthy demand from the world’s top buyer. Still, global financial and commodity markets are under pressure after an official survey on Sunday showed activity in China’s manufacturing sector unexpectedly contracted in October for a third month, fuelling fears the economy may still be losing momentum.

[reuters]

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