CNS Canada — Soybean and corn futures at the Chicago Board of Trade moved higher during the week ended Wednesday, with soybeans leading to the upside on the back of solid export demand and a rally in world vegetable oil markets.
The front-month contract moved well above the psychological $10 per bushel mark, which may bring in some farmer selling (all figures US$).
Wayne Palmer of Agri-Trend Marketing noted the $10 mark had proved hard to break above in the past, but said the momentum may finally be there to keep above that level.
Large U.S. soybean crop projections remain a bearish influence, but the seasonal harvest pressure should be easing off.
“Once you’re past the halfway point of the harvest, the pressure starts to subside,” said Mike Jubinville of ProFarmer Canada.
Sentiment has shifted from focusing on abundant supplies and big crops, to the impressive demand, he added. That demand has shown itself in solid U.S. export sales, especially to China.
The gains in corn were much more subdued than those seen in soybeans, with the corn market looking more rangebound from a chart standpoint.
The December corn contract finds itself stuck in a range from about $3.40 to $3.60 per bushel.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Follow him at @PhilFW on Twitter.