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GRAINS-Soybeans extend gains, corn up for 2nd session; market eyes US weather

Chicago soybean futures gained more ground on Wednesday while corn rose for a second session, as concerns over lower U.S. planting and rain-delayed harvest in Brazil supported prices.

Wheat edged higher after closing lower on Tuesday.

“Soybeans are getting strength after the USDA (U.S. Department of Agriculture) showed plantings this year below expectations,” said Phin Ziebell, agribusiness economist at National Australia Bank.

“Going forward, prices will get direction from the U.S. weather as growing season gets underway, but as of now we don’t see any major issues.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.3% to $14.22-1/4 a bushel by 0329 GMT and corn added 0.5% to $5.57-1/4 a bushel.

Wheat gained 0.1% at $6.16 a bushel.

Brazil in on track for an all-time high soybean crop this year, although harvesting and shipments have been delayed due to rains.

Agribusiness consultancy Agroconsult reported Brazilian farmers will harvest an estimated 137.1 million tonnes of soybeans in the 2020/2021 cycle, a record volume despite weather-related challenges.

Brazil’s second corn yields will fall by an estimated 3.6% this year, as most growers were forced to sow the cereal outside the ideal climate window after delays in the soy harvest, according to Agroconsult.

Last week, the USDA said that U.S. farmers plan to sow 87.6 million acres with soybeans this spring, well below market expectations.

In the wheat market, the lowest offer presented at an Egyptian state purchasing tender for wheat was $234.00 a tonne for 55,000 tonnes of Russian grain free on board (FOB), traders said.

Commodity funds were net buyers of CBOT soybean, soyoil and corn futures contracts on Tuesday and net sellers of wheat futures, traders said, while commodity funds were net even on soybean meal futures contracts.
Source: Reuters (Reporting by Naveen Thukral; Editing by Shailesh Kuber)

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