(Reuters) – U.S. soybeans rose on Wednesday, recovering some ground after the biggest two-day selloff in seven weeks, as a record harvest pace and better-than-expected yields weighed on the oilseed.
FUNDAMENTALS
Chicago Board Of Trade November soybeans rose 0.81 percent to $16.53-1/4 a bushel, having slipped 1.74 percent on Tuesday and nearly 6 percent over two days.
New-crop corn rose 0.37 percent to $7.42-3/4 after falling 1 percent in the previous session.
December wheat rose 0.64 percent to $8.69 a bushel, having closed down 1.65 percent on Tuesday.
A Reuters poll of 14 analysts on Tuesday put the soybean yield at 35.85 bushels per acre, up from the government’s latest forecast of 35.3 bushels on Sept. 12.
The surprising yields are leading some analysts to predict that soybean ending stocks will not dip below the psychologically important level of 100 million bushels. The U.S. Department of Agriculture has forecast stocks at 115 million bushels by next summer.
The pressure on soybeans was also fed by concerns that soybean demand from top importer China is set to wane, a surge in the pace of U.S. hog slaughter, and fading optimism over the Fed’s latest steps to stimulate the economy, analysts said.
USDA weekly crop progress report on Monday showed that 10 percent of the soybean harvest was complete as of Sunday, just ahead of the 9 percent expected by 11 analysts polled by Reuters.
MARKET NEWS
The yen stayed on the backfoot against the dollar on Wednesday as speculation grew the Bank of Japan might ease monetary policy later in the session, while the euro and high-beta currencies took another step down from multi-month highs.
Oil futures fell for a second straight session on Tuesday, pressured by concerns about sputtering global economic growth and by indications that OPEC’s top producer Saudi Arabia is working to drive down prices.
U.S. stocks ended flat to slightly lower on Tuesday after bellwether FedEx FDX.N cut its profit forecast and investors pulled back after last week’s rally on central bank stimulus.
