Chicago | Reuters — U.S. soybean futures rose about two per cent on Monday, bouncing off of a one-week low set Friday as traders positioned ahead of monthly crop reports due at midweek from the U.S. Department of Agriculture that are expected to project tighter U.S. supplies of the oilseed, traders said.
Strength in global vegetable oil markets lifted soyoil futures, further buoying the soy complex. Malaysian palm oil futures rose on supportive export and stocks data.
Corn futures followed the firm trend in soy while wheat futures ended lower after a choppy session.
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Chicago Board of Trade November soybeans settled up 27-3/4 cents at $13.45-1/2 per bushel, while benchmark December soyoil ended up 2.48 cents/lb., or 4.25 per cent, at 60.81 cents/lb. (all figures US$).
CBOT December corn settled up five cents at $4.99-1/2 per bushel while September wheat fell 3-1/4 cents to finish at $6.46-1/4 a bushel.
Traders await USDA’s supply/demand reports, due out Wednesday, in which the government is expected to lower its forecast of U.S. 2023 soybean production following a steep cut last month in its estimate of soy plantings. Most analysts also expect USDA to lower its U.S. soy yield forecast.
Analysts also expect USDA to lower its U.S. corn yield estimate, but an increased corn acreage estimate released on June 30 should temper changes to production of the yellow grain.
Ahead of USDA’s weekly crop progress report due later on Monday, analysts surveyed by Reuters on average expected the government to rate 53 per cent of the U.S. corn crop in good to excellent condition, up two percentage points from a week ago.
For soybeans, analysts on average predicted USDA would rate 52 per cent of the oilseed crop as good to excellent, also up two points from the previous week, following beneficial rains in the Midwestern crop belt that eased concerns about dry conditions stressing both crops.
CBOT wheat futures fell despite uncertainty over a Black Sea export deal that Russia is threatening to quit next week. The Kremlin on Monday said there was nothing new to say about the deal. Big Russian wheat exports have calmed market concern about a possible closing of the export corridor from Ukraine.
— Reporting for Reuters by Julie Ingwersen in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
