(NASDAQ) – Soybean futures rose on Thursday, bolstered by fresh evidence of strong demand for U.S. supplies of the oilseeds.
Meanwhile, corn and wheat prices fell amid expectations that a monthly supply-and-demand report due out from the government Friday would show higher estimates for grain production and stockpiles.
Despite anticipation that domestic farmers will reap a bumper harvest during the fall, ongoing signs of elevated demand could spur concerns over maintaining sufficient supplies, encouraging prices higher, analysts said.
“Demand for protein continues to be the story for the ag markets, with carbohydrates largely in ample supply,” said Arlan Suderman of brokerage INTL FCStone. “The question is now whether USDA will confirm that protein production is adequate to meet that demand or whether price rationing needs to occur.”
Soybeans for August delivery rose 5 1/4 cents, or 0.5%, to $10.22 1/4 a bushel at the Chicago Board of Trade.
Corn and wheat futures declined, weighed down by anticipation that the USDA, in the closely-watched crop report Friday, will boost its forecasts for domestic grain output and supplies. The government is expected to project U.S. wheat production during the 2016-17 season will be up by more than 10% from the previous season, while domestic inventories also will grow.
CBOT September wheat dropped 5 1/2 cents, or 1.3%, to $4.16 1/4 a bushel.
Analysts expect the USDA to peg domestic corn production at a record, and also raise its estimates for U.S. reserves in the 2015-16 and 2016-17 seasons. However, high temperatures baking the Midwest this week have spurred some speculation that the nation’s corn crop could suffer
“The recent heat has some wondering if early yield estimates were a little aggressive, but most are in agreement that the crop will be big regardless,” said Doug Bergman, of RCM Asset Management.
CBOT September corn fell 1 1/2 cents, or 0.5%, to $3.21 a bushel.
