Soybeans bounce with soymeal, buoyed by fresh sales
WINNIPEG - Chicago soybean futures rose on Tuesday, shaking off earlier losses, on support from higher soymeal prices and fresh export sales. Corn and wheat also rebounded from declines earlier in the session, helped by strong corn demand and rai...
WINNIPEG - Chicago soybean futures rose on Tuesday, shaking off earlier losses, on support from higher soymeal prices and fresh export sales.
Corn and wheat also rebounded from declines earlier in the session, helped by strong corn demand and rain soaking maturing U.S. wheat crops.
Chicago Board of Trade's July soybean contract climbed 6 cents, or 0.6 percent. to $10.64-1/2 a bushel by 10:37 a.m. CDT (1537 GMT), having closed 1.5 percent lower on Monday.
The U.S. Department of Agriculture (USDA) reported on Tuesday the sale of 140,000 metric tons of U.S. soybeans to unknown destinations for 2016/17 delivery, matching another sale on Monday. The deal gave the market an early nudge higher, said Terry Reilly, senior commodity analyst at Futures International.
Soymeal prices climbed more than 1 percent, as traders returned to worries about the size and quality of Argentina's soybean harvest following April floods, he said. Argentina is the world's top exporter of soymeal, a livestock feed ingredient produced along with soyoil when soybeans are crushed.
"It's kind of a turnaround Tuesday environment," Reilly said.
Second thoughts about weekly planting estimates released after the market closed on Monday also lifted soybeans, said Mike Zuzolo, president of Global Commodity Analytics. The USDA said soybean planting was 56 percent complete as of Sunday, ahead of the five-year average of 52 percent and also beating an average trade estimate of 55 percent.
But the USDA also reported that soybean planting in Ohio was 22 percent complete, down sharply from 64 percent finished a year ago.
"In 10 days, if we stay wet, we're going to be very behind in the eastern Corn Belt, the central Corn Belt, with bean planting," Zuzolo said.
Chicago July corn gained 2-1/4 cents, or 0.6 percent, to $4.00 a bushel, boosted by strong prospects for U.S. sales, said Dan Cekander, president of DC Analysis.
"There is ongoing U.S. old-crop corn export business, because we are competitive," he said.
The U.S. corn crop was 86 percent planted by Sunday, ahead of the five-year average of 85 percent but behind an average of analyst expectations for 88 percent.
Chicago July wheat added 4-3/4 cents, or 1 percent, to $4.66-3/4 a bushel on concerns that rain could threaten maturing crops in the U.S. Plains.
"I think the heavier-than-expected rain in hard red wheat country is maybe giving us a pop," Zuzolo said.