Soybeans edge higher, but improved S.American weather caps gains

Chicago soybean futures edged higher on Tuesday, recouping some losses from the previous session, although improved weather in key parts of Argentina and Brazil limited the upside potential in prices.

Wheat rose for the first time in three sessions.

“Argentina’s rainfall outlook has improved,” an agricultural analyst said. “The outlook is for some more improvement to occur, but additional follow up rainfall will be imperative to induce a true trend change.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.1% to $14.61-3/4 a bushel, as of 0318 GMT, corn rose a quarter of cent to $6.47-1/2 a bushel and wheat gained 0.5% to $7.52-1/4 a bushel.

Rains in parts of Argentina’s corn and soybean growing areas over the weekend have boosted crop prospects. Beneficial weather in expected in Brazil.

Argentina is the world’s leading exporter of processed soy, but its usually green Pampas plains have been hit by a historic drought that has preventing many farmers from planting their fields.

Rain showers crossed Argentina on Friday and Saturday, bringing needed moisture to just over half its corn and soy area, Commodity Weather Group said. More limited rains next week will allow crop stress to expand, the firm said.

Brazil, the world’s biggest soybean exporter, is expected to receive beneficial rains over the next two weeks.

Worries over a global economic downturn is likely to keep a mid on prices of agricultural products.

The U.S. Federal Reserve, the Bank of England and the European Central Bank last week revived investors’ recession worries by signalling more interest rate rises to contain inflation.

In demand news, exporters struck deals to sell 141,000 tonnes of U.S. corn to Mexico and 132,000 tonnes of U.S. soybeans to unknown buyers, the U.S. Department of Agriculture said.

India is set to offer 2 million to 3 million tonnes of wheat to bulk consumers such as flour millers and biscuit makers as part of efforts to cool record high prices, two government sources said, even as state reserves have dropped to the lowest in six years.

Commodity funds were net sellers of CBOT corn, wheat, soybean and soymeal futures contracts on Monday and net buyers of CBOT soyoil, traders said.

Tags: corn, soybean, wheat, futures