(Reuters) – U.S. soybeans firmed on Thursday on signs of resurgent export demand but corn drifted lower in subdued trade as the market awaited key monthly reports due Friday from the U.S. Department of Agriculture.
Wheat fell on plentiful supplies and technical selling, despite better-than-expected weekly export sales data.
At the Chicago Board of Trade as of 1:02 p.m. CDT (1803 GMT), November soybeans were up 2 cents at $9.84-1/4 per bushel. December corn was down 1 cent at $3.32 a bushel and September wheat was down 5-1/2 cents at $4.16-1/4 a bushel.
Soybeans rose after the USDA reported export sales of U.S. soybeans totalling more than 3 million tonnes in the week to Aug. 4, topping analysts’ expectations.
In addition, the USDA confirmed sales in the last day of 129,000 tonnes of U.S. soybeans to unknown destinations and another 120,000 to China.
“We are seeing very good demand right now for exports, suggesting foreign buyers are seeing value at these prices,” said Ted Seifried, chief market strategist for Zaner Ag Hedge.
A more than 4 percent jump in crude oil lent support to the commodities sector. The 19-market Thomson Reuters CoreCommodity CRB Index rose almost 1.5 percent.
However, upside momentum was limited in grains trade as brokers positioned for the USDA’s monthly supply/demand reports, which will include the government’s first estimates of U.S. 2016 corn and soybean yield based on field surveys.
“This whole week has been quiet as we wait to see what this report has to say,” Seifried said.
Analysts surveyed by Reuters expect the government to raise its corn and soybean yield estimates, but increased export demand for soybeans could prompt the USDA to trim its ending stocks forecasts.
Weather remains largely favorable, with rains crossing much of the Midwest this week as the corn crop fills kernel and soybeans set pods.
Wheat futures fell by a few cents a bushel on technical selling and ample global supplies. The market shrugged as USDA reported weekly export sales of U.S. wheat above 600,000 tonnes, a five-week high that topped trade expectations.
Wheat traders will be watching on Friday for revisions to the USDA’s world outlook in light of poor harvests in Western Europe and bumper crops in the Black Sea region.
Strategie Grains on Thursday slashed its forecasts for European Union soft wheat production and exports this season as the analyst firm factored in a “disastrous” harvest in France where it sees weather-hit yields at a 29-year low.
