(Reuters) – Chicago soybean futures edged higher on Tuesday snapping two sessions of declines and recovering from its lowest in more than three weeks on support from China’s persistent demand.
Corn fell for a third consecutive session, hovering close to its lowest since early October as near-perfect planting weather across Brazil anchored the market.
The Chicago Board of Trade most-active soybean contract rose 0.3 percent to $9.86-3/4 a bushel by 0314 GMT, having closed down 0.2 percent on Monday.
Corn gave up 0.4 percent to $3.36 a bushel, having dropped on Monday to its lowest since Oct. 3 at $3.35-1/2 a bushel, and wheat slid 0.1 percent to $3.93-1/2 a bushel.
“Export activity is bullish for soybeans, strong Chinese demand was confirmed by the USDA,” said Kaname Gokon at brokerage Okato Shoji in Tokyo.
“There is plenty of corn supply in the United States and South American plantings are progressing well in normal conditions.”
U.S. Department of Agriculture (USDA) confirmed on Monday private sales of 456,000 tonnes of U.S. soybeans.
China, which buys more than 60 percent soybeans traded worldwide, has been actively booking U.S. cargoes in recent weeks.
U.S. farmers have nearly finished gathering soybeans with the latest USDA report putting the harvest progress at 97 percent, slightly above the five-year average of 95 percent.
Corn harvest was 93 percent complete, almost matching the average pace of 92 percent.
Farmers in Brazil were actively planting corn with recent rains in dry areas boosting crop prospects, traders said.
Wheat is under pressure as the U.S. dollar has strengthened, making U.S. grains less attractive on the world market. The country exports about 40 percent of its wheat crop.
The dollar is closing in on a test of its highest level in almost 14 years as bond yields soared after Donald Trump’s election to president, bringing buyers back to the U.S. currency.
Russian farmers have sown winter grains on the largest area in the last seven years and will plant more in the coming weeks, improving prospects for the 2017 crop, analysts said.
Commodity funds were net sellers of CBOT corn, wheat, soybean and soyoil contracts on Monday but were net buyers of soymeal, traders said.
