SOYBEANS UP FOR FOURTH SESSION ON SUPPLY WOES, WHEAT AT 1-MTH TOP
Chicago soybean futures rose for a fourth consecutive session on Wednesday, trading close to their highest in more than five weeks, with shipping delays in the world’s largest exporter Brazil supporting prices.
Wheat rose 0.5% as concerns about potential crop losses in a key U.S. growing region pushed prices to a more than one-month high.
“There are some short-tem supply constraints,” said Phin Ziebell, agribusiness economist at National Australia Bank in Melbourne. “We have to look at other commodities such as oil as well. If oil prices keep going higher, it is supportive for grains complex.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.4% to $14.14-1/2 a bushel, as of 0308 GMT, having climbed to its highest since Jan. 15 in the last session.
Wheat was up 0.5% at $6.73-3/4 a bushel to near its session high of $6.76 a bushel, the highest since Jan. 20, while corn eased 0.1% to $5.52-1/4 a bushel.
Consultancy AgRural said on Monday that the soybean harvest pace in Brazil was the slowest in a decade.
Condition ratings for winter wheat declined during February in Kansas, the top U.S. winter wheat producer, but monthly ratings were mixed in other Plains states, the U.S. Department of Agriculture said on Monday.
Tightening grain supplies in the Black Sea region are providing additional support.
Ukraine’s grain stocks totalled 18.2 million tonnes as of Feb. 1, 3.5 million tonnes less than by the same date in 2020, the APK-Inform consultancy said on Tuesday, citing data from the State Statistics Service.
Oil has rallied more than 26% this year to a 13-month high on expectations for recovery in demand and production cuts by key exporters.
Commodity funds were net buyers of CBOT soybean, corn, soyoil, soymeal and wheat futures contracts on Tuesday, traders said.
Source: Reuters (Reporting by Naveen Thukral; Editing by Vinay Dwivedi)