September 25, 2023

 

US soybean futures increase on September

 

US soybean futures rose on September in a light technical rebound from six-week lows while corn and wheat also ticked higher on bargain-buying.

 

However, gains in all three markets were limited by a strong US dollar, analysts said.

 

Chicago Board of Trade (CBOT) November soybeans settled up 2-1/2 cents at US$12.96-1/4, bouncing after a drop to US$12.92-1/2, the contract's lowest since August 8. Some traders said the market's retreat below US$13 signalled potential further weakness.

 

CBOT December corn ended up 2 cents at US$4.77-1/4 a bushel, holding above last week's low of US$4.67-3/4, the lowest on a continuous chart of the most-active contract since December 2020.

 

CBOT December wheat rose 3-3/4 cents to settle at US$5.79-1/2, climbing after early weakness.

 

A firm dollar hung over the markets at a time when US grains are already struggling to compete in the global export market with wheat supplies from Russia and Brazilian corn and soybeans.

 

"The biggest problem we have right now is demand for American products," said Jim McCormack, a managing partner at AgMarket.net.

 

"We're just not priced competitively - Russia on the wheat, South America on the corn and beans. The dollar has something to do with it as well," McCormack said.

 

However, drought in Argentina and Australia could tighten world wheat supplies later in the season, while war in Ukraine remained a risk to Black Sea trade. Two grain ships set sail last week from a Ukrainian port on the Black Sea, the first since Moscow quit a deal in July to allow exports, as Kyiv works to break Russia's de facto blockade.

 

Freshly harvested US corn and soybeans were adding to ample South American supplies, though doubts lingered over US yield potential following dry weather in the US Midwest this spring, while farmers in Brazil are facing dry planting conditions.

- Reuters