Chicago | Reuters — U.S. soybean futures rose for a second straight day on Wednesday on expectations that U.S. harvest yields will be lower than the latest government forecast and on limited sales by farmers awaiting news from U.S.-China trade talks and details of government aid.
Corn followed soybeans higher as an expected yield forecast cut underpinned the market, although gains were limited by projections for a record-large U.S. crop.
Wheat futures firmed on short covering after a stronger dollar and rising global supplies had dragged prices to near five-year lows.
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CBOT weekly: Soybeans/corn showing strength amidst harvest
Corn and soybean futures at the Chicago Board of Trade were showing some strength during the first week of October, despite seasonal harvest pressure keeping a lid on the upside.
Corn and soybeans gained despite the ongoing U.S. harvest, but both markets have struggled to break out of recent ranges as a U.S. government shutdown has disrupted agricultural data and deprived the market of its usual direction.
Analysts polled by Reuters expect the latest yield estimates from the U.S. Department of Agriculture to be reduced when the agency resumes reporting data. Its monthly supply and demand report, originally scheduled for release on Thursday, will not be issued.
“I don’t feel like we’re getting a whole lot of harvest pressure in beans. Farmers are not aggressively selling beans even though they are aggressively harvesting beans,” said Ted Seifried, chief market strategist for Zaner Ag Hedge.
Cash basis values around the Midwest have been firm this week due to slower-than-normal sales.
Optimism that a meeting between U.S. President Donald Trump and China’s Xi Jinping at the end of the month could revive Chinese buying of U.S. soybeans offered additional support, Seifried said.
The market is awaiting details of a farm aid package that could help growers struggling with China’s lack of purchases.
Soybeans were also underpinned by labor tensions in Argentina, where workers at soy processors called for a strike this week.
Chicago Board of Trade November soybeans rose 7-1/2 cents to $10.29-1/2 a bushel, while December corn added 2-1/4 cents to $4.22 a bushel. CBOT December wheat was 1/2 cent higher at $5.07-1/4 a bushel.
