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U.S. grains: Soy, corn futures rise; wheat dips on supply glut

Frost damage not as bad as feared in U.S. growing areas

(Canada Beef Inc. photo)

Chicago | Reuters — U.S. soybean futures firmed on Monday on a bargain-buying rebound after hitting their lowest in more than four years, but gains were kept in check by expectations of a record U.S. harvest this fall, traders said.

Corn futures also were higher, with short-covering and technical buying featured as prices hovered near contract lows. Wheat slipped, with plentiful global supplies and low demand for U.S. offerings on the export market sending prices to the lowest since 2010.

The front-month Chicago Board of Trade soft red winter wheat contract settled below $5 a bushel for the first time since July 6, 2010. Benchmark CBOT December wheat has shed 6.5 per cent during a six session losing streak.

Soybean and corn futures received additional support from some harvest delays due to wet fields in key growing areas.

But huge supplies were expected once harvest gears up in the coming weeks, particularly after a drop to freezing temperatures in parts of the Midwest during the weekend caused less damage than expected.

“The frost threat is in the rear-view mirror and the trade will be hard-pressed to find another weather issue into harvest,” Matt Zeller, director of market information at INTL FCStone, said in a note to clients.

Chicago Board of Trade soybeans for November delivery settled up 4-1/4 cents at $9.89-1/2 a bushel (all figures US$). The front-month contract hit its lowest on a continuous basis since July 7, 2010, during the overnight trading session.

A 2.2 per cent rally in soyoil futures, spurred by an industry report that showed soyoil stocks at their lowest in almost 10 years, added further support to soybeans.

CBOT December soft red winter wheat was down 1-3/4 cents at $5.00-3/4. CBOT front-month wheat hit its lowest since July 7, 2010, early in the trading day.

K.C. hard red winter wheat and MGE spring wheat posted bigger declines, putting more pressure on the benchmark soft red winter wheat contracts.

In Europe, wheat prices were also down after the USDA’s latest estimates of ample supplies and because of a lack of export prospects for the poor-quality French harvest.

The November contract on Paris-based Euronext wheat futures was down 0.8 per cent at 161.50 euros a tonne, not far from the four-year low of 160.50 euros hit on Friday.

CBOT corn for December delivery rose 4-1/2 cents to $3.43 a bushel.

— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Sybille de La Hamaide in Paris and Naveen Thukral in Singapore.

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