Soybeans rise from 5-mth low, big Brazil crop caps gains

March 19th, 2015

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Category: Grains, Oilseeds

soybean crop red machine 450x299(Reuters) – U.S. soybean futures rose 0.7 percent on Wednesday, rebounding from their lowest in almost five months a day earlier, but expectations of ample South American crops capped gains.
“Soybeans, wheat and corn are seeing a limited technical rebound today on support from bargain hunting after their strong falls on Tuesday,” Frank Rijkers, agrifood economist at ABN AMRO Bank, said.

“Wheat continues to gain support from concern about dry weather in U.S. grain belts while soybeans are also being underpinned by expectations of strong Chinese import demand.”

Chicago Board of Trade front-month May soybeans rose 0.7 percent to $9.61-1/2 a bushel by 1145 GMT, having fallen 1.5 percent on Tuesday when prices hit their lowest since October.

May wheat climbed 0.7 percent to $5.07 a bushel, having closed down 2 percent on Tuesday. May corn rose 0.6 percent to $3.73-1/4 a bushel after a 2.1 percent drop in the previous session.

“Overall fundamentals still look bearish for prices,” Rijkers said. “The huge soybean harvest in Brazil is now gathering speed and will start arriving on the world market in larger volumes in coming weeks.”

“The stronger dollar will be a continued burden for U.S. wheat and corn exports,” he said.

Large Brazilian sales of new crop soybeans are likely to capture a large amount of global demand as exports start to roll following disruption from a truck strike, analysts said.

China, the world’s second-largest corn consumer, has looked away from the United States, booking more than 600,000 tonnes of corn from Ukraine this year and more deals from the Black Sea are expected.

Concerns about unfavourable weather across key growing regions in the United States continued to provide support to wheat, traders said.

The U.S. Department of Agriculture this week said Kansas winter wheat was rated 41 percent good to excellent condition, down from 46 percent in the previous week.

Ratings for Oklahoma winter wheat fell 2 percentage points to 40 percent good to excellent.

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