Chicago soybeans rise on uncertainty about U.S. harvest and tight supplies

Chicago soybeans saw an increase in trading on Thursday as concerns over the upcoming U.S. harvest size and tight domestic supplies supported prices. The most-active soybean contract on the Chicago Board of Trade (CBOT) rose by 0.5% to $13.29-1/2 a bushel. Meanwhile, corn was slightly lower, but still above the 32-month low, while wheat remained steady.

Rains expected at the end of the month are predicted to limit crop stress in the Midwest following a hot and dry spell, as reported by Commodity Weather Group.

Analysts are anticipating that the U.S. Department of Agriculture (USDA) will report zero to 400,000 metric tons for 2022-23 and 550,000 to 1.3 million metric tons for 2023-24 in terms of weekly U.S. soybean export sales. For corn, analysts are expecting zero to 250,000 metric tons for 2022-23 and 500,000 to 1 million metric tons for 2023-24. The USDA is also expected to report 200,000 to 525,000 metric tons for 2023-24 in terms of weekly U.S. wheat export sales.

In other news, grain silos and warehouses at the Ukrainian river port of Reni on the Danube were damaged by Russian drone strikes, affecting the country’s food exports. Additionally, soft wheat exports from the European Union have decreased by 11% compared to the previous year. One of Brazil’s largest grain crushers, Caramuru Alimentos, announced that it has started selling soybean-based ethanol at one of its plants.

China has called for more measures to protect its crops following recent floods in its grain-producing northeast region, as there are concerns about the potential for worsening diseases and infestations.

Commodity funds were net buyers of Chicago Board of Trade corn, wheat, soybean, soymeal, and soyoil futures contracts.

In terms of market news, Asian shares have slid to nine-month lows, and the dollar has reached a two-month peak due to fears over China’s economic recovery and concerns of a potential interest rate hike by the Federal Reserve.

Tags: soybeans, wheat, grain silos, sales, U.S., contract, harvest, corn, export, prices