Posted on December, 4, 2024 at 07:28 am
U.S. soybean futures rebounded on Tuesday in a short-covering and bargain-buying bounce from the prior day’s losses, although gains were limited by favorable crop prospects in South America, where Brazil is due to harvest a record crop early next year.
Corn and wheat traded on both sides of unchanged but ended well below session highs on pressure from ample global grain supplies.
Concerns about a slumping agriculture sector were overhanging grains markets after Cargill said it plans to lay off five per cent of its staff amid slumping revenues, ADM warned of a challenging 2025 and Tyson announced another meat plant closure.
Chicago Board of Trade January soybeans ended up 6-1/2 cents at $9.91-3/4 a bushel, March corn was down 1/4 cent at $4.32-1/4 a bushel and CBOT March wheat was up 1/4 cent at $5.47-1/2 a bushel.
Soybeans remained locked in a narrow range as traders weighed a recent rise in U.S. export sales against heavy global supplies and concerns about the incoming Trump administration’s hawkish approach to trade with top soy importer China.
“We’re still in a narrow band of trading in soybeans, waiting on some further confirmation of tariffs and trade policy,” said Rich Nelson, chief strategist at brokerage Allendale.
A government report showing a stronger-than-expected October U.S. soy crush underpinned soybeans, but news that Biden administration officials will not finalize guidelines on new clean fuel tax credits hammered soyoil prices at midsession.
Brazilian soybean growers are expected to reap an enormous crop, while rains across Argentina’s agricultural heartland have brought much-needed moisture to the soil as farmers are planting.
Meanwhile, U.S. wheat futures have hovered near contract lows as large global harvests and recent dollar strength dented U.S. export prospects.
Australia raised its national wheat harvest estimate on Tuesday, with good yields in the east and west forecast to compensate for losses in the south.
Source: Manitoba