Chicago | Reuters — U.S. soybean futures rose 1.3 per cent on Tuesday as a rally in the energy market boosted demand for soy-based biofuels, traders said.
Wheat futures were down on profit-taking after three straight days of gains pushed the market to its highest since mid-August. The wheat weakness dragged corn lower.
Soybeans were led higher by soyoil, which ended up 3.9 per cent and has risen for 10 of the last 11 trading sessions.
“Traders are focused on energies and that is helping out bean oil,” said Terry Reilly, senior analyst with Futures International in Chicago.
Oil prices jumped on Tuesday, with Brent futures touching a three-year high, while U.S. crude hit its highest since 2014 after the OPEC+ group of producers stuck to its planned output increase rather than pumping even more crude.
Chicago Board of Trade November soybean futures were up 15-3/4 cents at $12.51-1/2 a bushel (all figures US$). CBOT December soyoil was up 2.31 cents at 61.14 cents/lb.
CBOT December corn futures were down 3-1/4 cents at $5.37-1/2 a bushel.
A fast pace of harvest in the U.S. Midwest was hanging over the market.
The U.S. Agriculture Department estimated on Monday afternoon that corn harvest was 29 per cent complete, ahead of the five-year average of 22 per cent and in line with market expectations.
“The arrival of these new supplies is putting some pressure on prices,” consultancy Agritel said in a note.
Private analytics firm IHS Markit Agribusiness estimated U.S. 2021 corn production at 15.085 billion bushels, above USDA’s forecast for 14.996 billion.
CBOT December wheat was off 11-3/4 cents at $7.44-3/4 a bushel.
Rains in key U.S. growing areas improved prospects for recently seeded winter wheat, adding pressure on the futures market, Reilly said.
USDA said that 47 per cent of the winter wheat crop was planted, one percentage point ahead of the five-year average.
— Mark Weinraub is a Reuters commodities correspondent in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.