(Reuters) – Chicago corn and soybean futures rebounded on Thursday as financial markets took a more positive view of Donald Trump’s U.S. election win and grain investors shrugged off higher than expected U.S. supply estimates.
Wheat also saw a bounce after tracking corn and soybeans lower in the last session.
The Chicago Board of Trade most-active corn contract had climbed 1.1 percent to $3.44-1/2 a bushel by 1237 GMT, having slumped 3.8 percent in the previous session, when prices hit a near one-month low of $3.40-1/2 a bushel.
CBOT soybeans gained 1.5 percent to $10.06 a bushel, having closed down 2 percent on Wednesday. Wheat added 1.2 percent to $4.11-1/2 a bushel, after ending down 2 percent.
The U.S. Department of Agriculture’s (USDA) monthly report on Wednesday had dampened prices by raising U.S. corn and soybean output more than expected and also projecting end of season stocks higher than anticipated.
Soybeans, which have been underpinned by recent brisk U.S. exports, led the rebound on Thursday as the market turned its attention back towards demand in the run-up to weekly U.S. export sales figures at 1330 GMT.
Grain investors also saw record U.S. corn and soybean crops as priced in and the focus shifting towards the South American growing season.
“A lot of the bearish news is out there, so how much more bearish you can be when we know there is a lot of grain and oilseeds?,” said Stefan Vogel, global grain strategist at Rabobank.
“I expect continued strong U.S. soybean exports, not just this week but for much of the season.”
Market attention is also turning to South American crops now being grown.
Argentine farmers will harvest an estimated 52.5 million tonnes of soybeans in the 2016-17 crop year, the Rosario grains exchange said on Wednesday in its first estimate of the season.
Grain also drew support from firm outside markets, as investors were reassured by a conciliatory tone struck by Donald Trump after his surprise victory and warmed to the prospect of large infrastructure spending.
“The expectation of a weaker dollar hasn’t really materialised,” Vogel said. “It will take time to see some real political action by the new President.”
