Soybeans rise after 4-day slide, U.S. Midwest weather in focus

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SINGAPORE — Chicago soybean futures rose on Thursday as traders scooped up bargains after a four-day slide, although forecasts of improved weather in parts of the U.S. Midwest kept a lid on prices.

Wheat gained ground after closing largely unchanged on Wednesday.

“U.S. farmers have had a very wet start to the planting season for corn and soybeans,” said Phin Ziebell, agribusiness economist at National Australia Bank. “It was flooding in some areas, so I think an outlook for dryness will be advantageous for the crops.”

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The most-active soybean contract of the Chicago Board of Trade (CBOT) climbed 0.8% to $17.07-1/2 a bushel, as of 0322 GMT. Wheat rose 0.7% to $10.57 a bushel and corn gained 0.4% to $7.77 a bushel.

Corn and soybean traders were monitoring a hot spell in the Midwest, where the planting of both crops is nearly complete after a slow start due to cool and wet weather in April and May.

For wheat, weather forecasts in the southern Plains hard red winter wheat belt called for “favorably dry” conditions, the Commodity Weather Group said.

Russia on Wednesday said it has offered “safe passage” for Ukraine grain shipments from Black Sea ports but is not responsible for establishing the corridors and Turkey suggested that ships could be guided around sea mines.

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Ukrainian grain shipments have stalled since Russia’s invasion and ports blockade, stoking global prices for grains, cooking oils, fuel and fertilizer.

The United Nations is trying to broker a deal to resume Ukraine exports and Russian food and fertilizer exports, which Moscow says are harmed by sanctions.

Egypt’s imports of Russian wheat rose 84% in March-May from the same period last year, freight data showed, even though traders said there were some complications around payment and shipping.

Egypt, one of the world’s top wheat importers, has become heavily reliant on Russian and Ukrainian grain in recent years.

Commodity funds were net buyers of CBOT soymeal futures contracts on Wednesday, net sellers of soybean, soyoil and wheat futures, and net even in corn, traders said. (Reporting by Naveen Thukral; Editing by Rashmi Aich and Subhranshu Sahu)

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