SINGAPORE — Chicago soybean futures gained more ground on Monday as strong Chinese demand and concerns over U.S. supplies underpinned the market.
Wheat slid as easing concerns about global export supplies weighed on prices.
“It is big China demand which is a key factor for the soybean market,” said Phin Ziebell, an agribusiness economist at National Australia Bank in Melbourne.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.3% at $12.90-1/2 a bushel, as of 0039 GMT.
Wheat lost 0.2% to $6.87-1/2 a bushel, while corn added 0.1% to $5.17-3/4 a bushel.
Soybeans are being buoyed by sales notice of 132,000 tonnes of U.S. soybeans to China for 2021/22 delivery.
The U.S. Department of Agriculture’s monthly supply and demand report increased U.S. corn and soybean production, though much of the agency’s findings were already accounted for by recent sell-offs, traders said.
Australian farmers are on course to harvest a near record amount of wheat this season, the country’s chief commodity forecaster said last week, as it lifted its production forecast by more than 17% following recent favorable weather.
Ukraine has exported 10.8 million tonnes of grain so far in the 2021/22 July-June season versus 9.6 million tonnes at the same point a year earlier, agriculture ministry data showed on Friday.
Large speculators cut their net long position in CBOT corn futures in the week ended Sept. 7, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and cut their net long position in soybeans. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)