(NASDAQ) – Grain and soybean futures rebounded Wednesday, bolstered by fresh signs of demand for U.S. crops and higher energy prices.
Soybean prices rose, buoyed by evidence of ongoing demand for U.S. supplies of the oilseeds. The U.S. Department of Agriculture on Thursday said private exporters had booked sales totaling 697,200 metric tons of soybeans for delivery to unknown destinations and China during the 2015-16 and 2016-17 crop years. The sales come after federal data earlier in the week showed soybean crop conditions are improving, and expectations mount that government forecasters in a monthly crop report next week will raise yield estimates for the crop, foreshadowing a massive harvest come fall.
Soybeans for August delivery gained 5 1/4 cents, or 0.5, to $9.90 1/2 a bushel at the Chicago Board of Trade.
Corn prices settled slightly higher after the USDA said private exporters also sold 290,000 metric tons of corn for delivery to unknown destinations during the 2016-17 crop year. Surging crude oil prices also supported corn and soybean markets Wednesday, as higher oil prices tend to increase the incentive for U.S. refiners to blend alternative fuels like corn-based ethanol and soybean-based biodiesel into the nation’s fuel supply, driving demand for the crops.
Still, largely favorable Midwest weather capped gains in the markets, with no prolonged heat forecast for the Farm Belt and good rains expected to follow warmer temperatures toward the middle of August. The prospect that U.S. farmers could raise a record corn crop also pressured prices.
CBOT September corn added 3/4 cent, or 0.2%, to $3.25 a bushel. Prices for the grain fell to a 22-month low on Tuesday.
CBOT September wheat climbed 9 cents, or 2.2%, to $4.10 1/4 a bushel. Wheat prices are trading at 10-year lows.
