Chicago | Reuters—Chicago soybeans rose further on Friday to a two-month peak as brisk weekly exports, hopes that China will revert to buying U.S. crops and a rally in soyoil offset supply pressure from favorable U.S. field conditions.
Corn chopped up and down as the strong yield potential shown by a U.S. field tour curbed support from bumper weekly exports. Wheat also seesawed, but slipped from a three-week high.
The most active soybean contract on the Chicago Board of Trade Sv1 settled 2-1/2 cents higher at $10.58-1/2 per bushel after touching its highest level since June 23 at $10.59-1/2.
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Soybeans rallied on Thursday as byproduct soyoil BOv1 surged by nearly five per cent after Reuters reported that the U.S. administration is poised to issue a ruling on requests by small oil refiners for biofuel exemptions.
Traders saw scope for authorities to reallocate biofuel obligations to larger refiners and thereby sustain demand for biofuel, which is made with feedstocks including soyoil.
Rumors that China was inquiring about U.S. soybeans lent further support, generating hope that the Asian country could end months of ignoring U.S. supplies amid a trade war with Washington. Traders, however, said there were no clear signs of any purchases.
The demand expectations turned attention away from results from the annual Pro Farmer crop tour, which confirmed high yield potential in the U.S. Midwest despite some disease issues.
On Thursday’s final day of the tour, scouts reported Iowa’s corn yield potential and soybean pod counts at their highest levels in at least 22 years. Minnesota also posted its strongest readings for both crops over the same period.
CBOT corn Cv1 ended 1/4 cent lower at $4.11-1/2 per bushel. Prices reached a three-week top on Thursday as they recovered from contract lows struck last week.
Weekly export sales for corn were well above market expectations at about 2.8 million tons.
CBOT wheat Wv1 settled 2-1/2 cents lower at $5.27-1/4 per bushel after demand hopes helped push the cereal to a three-week high the previous day.
—Additional reporting by Gus Trompiz in Paris and Ella Cao and Lewis Jackson in Beijing.
