(Reuters) – U.S. soybean futures edged higher for a second session on Thursday but held near a three-month low as the prospect of a bumper South American harvest kept a firm lid on the market.
Corn and wheat also rose slightly, with the latter recovering from a 10-week low earlier in the week linked to sluggish export demand.
The subdued mood was encouraged by caution ahead of an expected decision by the European Central Bank (ECB) later on Thursday to start buying bonds, an announcement that could spark swings in exchange rates and impact dollar-denominated commodities.
Chicago Board of Trade March soybeans rose 0.5 percent to $9.88 a bushel by 1126 GMT, having closed up 0.2 percent in the previous session.
The price hit a three-month low of $9.72-1/4 a bushel earlier in the week on expectations of a record Brazilian crop, which would boost already ample global production and tempt top buyer China to turn from U.S. to South American supplies.
“There is big supply out there. We think soybeans have the potential to move much lower because of the global harvest,” Hamish Smith, commodities economist with Capital Economics, said.
Recent dry conditions in Brazilian crop belts have lent soybeans some support but concerns have eased after forecasts for timely rain linked to the arrival of a cold front this week.
Cancellations of U.S. soybean sales by China in the past week have dented export sentiment, although the U.S. government on Wednesday reported a new sale to China.
“Coming up to Chinese New Year, there will likely be a bit of volatility in the market there as buyers come and go,” Smith said.
March wheat futures rose 0.6 percent to $5.40 a bushel, having closed little changed in the previous session. March corn was up 0.4 percent at $3.89-1/2 a bushel, having closed down 0.6 percent on Wednesday.
