Home / Commodities / Commodity News / Soybeans rebound from 4-mth low, but S.American output and swine fever caps gains

Soybeans rebound from 4-mth low, but S.American output and swine fever caps gains

U.S. soybean futures edged up on Thursday to ease from a 2019-low touched the day before, but
gains were checked by expectations of ample South American supply and fears swine fever outbreaks in China could hit demand
for oilseeds there.
    
Corn prices were unchanged, while wheat inched higher despite forecasts for bumper global stocks.
    
The most active soybean futures on the Chicago Board of Trade were up 0.1 percent at $8.79-3/4 a bushel by 0301
GMT. They closed down 1 percent on Wednesday, having marked their lowest since Dec. 26 at $8.78-1/2 a bushel.
    
But analysts said that prices for the oilseed remained under pressure.
    
"The news suggests the market is both gaining supply from bigger South American crops and losing demand as China's pigs
succumb to African swine fever," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
     
Argentina estimated its 2018-19 soy harvest at 55.9 million tonnes, up from a drought-reduced 37.78 million tonnes last year.
    
In Brazil, consultancy Celeres pegged the country's soybean crop at 115.8 million tonnes, up from its previous estimate of
113.8 million.
    
Meanwhile, Chinese pork prices are set to jump 70 percent in the second half of the year, a senior official said on Wednesday, after data showed an outbreak of African swine fever cut the world's largest hog herd by 10 percent in the first
quarter. China uses soybeans to make ingredients for animal feed.
    
Potentially offering some support to soy prices, the Wall Street Journal reported that the United States and China have
tentatively scheduled a fresh round of face-to-face trade talks, with negotiators aiming to hold a signing ceremony in late May
or early June.
    
The most active corn futures were unchanged at$3.58-1/4 a bushel. They closed down 1 percent in the previous
session, after hitting their lowest since April 9 at $3.56-3/4 a bushel.
    
The most active wheat futures were up 0.1 percent at $4.47-1/2 a bushel, having closed up 0.4 percent on Wednesday.
    
The U.S. Department of Agriculture in a weekly report issued on Monday rated 60 percent of the U.S. winter wheat crop in
good-to-excellent condition. That was unchanged from the previous week and in line with trade expectations, but up from 31 percent a year ago.
        
 Grains prices at  0301 GMT
 Contract        Last  Change  Pct chg  Two-day chg    MA 30  RSI
 CBOT wheat    447.50    0.50   +0.11%       +0.56%   458.91   37
 CBOT corn     358.25    0.00   +0.00%       -0.21%   366.23   44
 CBOT soy      879.75    0.75   +0.09%       -0.93%   897.51   32
 CBOT rice      10.43  -$0.05   -0.52%       -0.86%   $10.72   43
 WTI crude      63.70  -$0.06   -0.09%       -0.55%   $60.90   61
 Currencies                                                      
 Euro/dlr      $1.129  $0.000   -0.01%       +0.12%              
 USD/AUD       0.7180   0.000   +0.03%       +0.07%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
Source: Reuters (Reporting by Colin Packham; Editing by Joseph Radford)

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping