Reuters — Chicago soybean futures edged up on Wednesday, as a declining U.S. dollar lifted the oilseeds at one point nearly one per cent before risk aversion pushed prices back toward their opening levels.
Wheat declined and corn was squeezed between them in what one strategist called a seasonal “bottoming formation” for the U.S. agriculture markets as traders awaited fresh data on harvest and supplies.
Most-active Chicago Board of Trade (CBOT) soybean futures finished up just 1/4 cent to settle at $12.73 per bushel (all figures US$). November soybeans climbed to $12.85 mid-session as a falling U.S. dollar lifted the oilseed’s competitiveness on global markets.
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But rising U.S. interest rates may have undercut investor appetites for risk, as yields on the U.S. 30-year Treasury crossed above five per cent for the first time since August 2007.
“I think you’re seeing the funds pull some risk off the table; that means selling beans,” said Scott Harms, a senior agricultural risk specialist with Archer Financial Services in Chicago. “So I think exiting of positions in both soybeans and soybean oil is a big part of that,” he said. December soybean oil futures fell almost two per cent.
CBOT December soft red winter wheat declined nearly 1.5 per cent to end at $5.60, pushed lower by profit-taking.
December corn fell 1-1/2 cents to $4.86 a bushel, consolidating near a three-week high, but not far from lows last seen in December 2020.
“Demand has been a real albatross for the marketplace,” Harms said, adding, “we expect that demand to improve as South American supplies dwindle moving into the winter months.”
Traders will get an update on demand in a U.S. Department of Agriculture (USDA) report on net export sales due Thursday at 7:30 a.m. CT.
— Reporting for Reuters by Zachary Goelman in New York; additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra.
