(NASDAQ) – Soybean futures extended gains Wednesday as Midwest weather forecasts turned warmer and drier and evidence of continued export demand buoyed the market.
Meanwhile, prices for corn rose while wheat slipped.
Continuing signs of robust demand for U.S. supplies of the oilseeds also helped shore up prices, with the U.S. Department of Agriculture reporting Monday that private exporters sold 131,000 metric tons of soybeans for delivery to China during the 2015-16 and 2016-17 crop years. Analysts said speculation over increased buying interest from China, the world’s largest soybean importer, added to positive sentiment in the market.
“The general attitude on beans seemed to change today,” said Charlie Sernatinger, head of grains trading at ED&F Man Capital Markets, noting that since prices for the oilseeds have dropped more than $2 a bushel from their peak in June, many traders appear to have determined that “beans may have done enough damage on the downside for now.”
Soybeans for August delivery gained 17 cents, or 1.7%, to $10.10 1/2 a bushel at the Chicago Board of Trade.
The corn market also benefited from hopes of a prolonged uptick in export demand as tight grain supplies in South America drive importers to seek U.S. corn instead. The USDA on Wednesday said private exporters had sold 247,912 metric tons of corn for delivery to unknown destinations during the 2015-16 and 2016-17 crop years.
CBOT September corn advanced 3 1/4 cents, or 1%, to $3.35 3/4 a bushel.
Wheat prices closed slightly lower due to ample domestic grain inventories and weakness in the European wheat market. Still, signs that dryness had curtailed spring wheat yields in the northern Midwest helped bolster U.S. wheat prices. Analysts said crop scouts on an annual tour of wheat-growing states like North Dakota on Tuesday pegged average yields for the first day of the tour at 43.1 bushels per acre, down from 51.1 bushels last year.
