Soybeans firm on exports, meal strength
CHICAGO — Chicago soybeans climbed on Tuesday, supported by fresh export sales and contract highs in soybean meal as weather concerns threaten Argentina’s crop, traders said.
Wheat ended the session lower after trading near even much of the day, falling to fresh 13-month lows on strong global supplies. Corn followed wheat lower, despite support from the soybean complex.
Chicago Board of Trade’s most-active January soybeans climbed 17-1/4 cents to $14.55 a bushel.
Corn ended down 3-1/4 cents to settle at $6.37-1/4 a bushel, while wheat slid 10 cents to settle at $7.29 a bushel, after falling to $7.23-1/2, the lowest level for a most-active contract since Oct. 15, 2021.
The U.S. Department of Agriculture announced that U.S. exporters sold 264,000 tonnes of soybeans for delivery China, as well as 240,000 tonnes to unknown destinations, both during the 2022/2023 marketing year.
Strength in the soybean meal market added support. New life-of-contract highs were hit in every soymeal contract month, as top meal exporter Argentina faces drought conditions that are hampering soy plantings.
“Argentina is a crusher,” said Tom Fritz, commodity broker at EFG Group. “Right now, they’re holding off on planting. I think that’s helping the meal market.”
The most-active January soybean meal contract climbed $16.50 to settle at $448.60 per short ton.
The easing of COVID-19 quarantine rules in China could increase demand for soybeans.
Corn was supported by the firm soybean market, but a lack of export demand has added weight to the market, says Karl Setzer, commodity risk analyst at Agrivisor.
“We’re not seeing buyers jump into the market,” Setzer said. “The bottom line is, the United States is the most expensive corn on the global market, by a considerable amount.”
Wheat traded just above even after dropping the previous three sessions, as cheaper world supplies weigh on the market.
Pakistan bought 950,000 tonnes of wheat on Monday, with Russian supplies expected to dominate. Russian wheat export prices fell last week amid a record domestic harvest. A record wheat harvest is expected in Australia. (Reporting by Christopher Walljasper in Chicago; Editing by Aurora Ellis)
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