Soybeans up for third session on Argentina drought, wheat rebounds

Content of the article

SINGAPORE — Chicago soybean futures rose on Wednesday, gaining for a third straight session as a lack of rain at the main Argentine supplier supported the market.

Wheat prices rebounded as extremely cold weather on the US plains raised concerns about weather damage to the winter crop.

Content of the article

FUNDAMENTALS

* The most active soybean contract on the Chicago Board of Trade (CBOT) added 0.7% to $14.99-3/4 a bushel, at 0015 GMT, while wheat gained 0.4% at $7.77-3/4 a bushel and corn remained unchanged at $6.74-3/4 a bushel.

Content of the article

* Soybean futures rose after expected rainfall over the weekend in Argentina missed large parts of the parched crop region, analysts said.

* The market also found support as China continues to ease COVID-19 restrictions, announcing plans to start issuing visas next week, although rising infections may dampen demand for soybeans .

* Snow, high winds and temperatures well below freezing have threatened dormant hard red winter wheat crops in the U.S. Great Plains, especially where lack of snow makes plants vulnerable to damage from cold.

* Russian wheat prices fell last week on the back of a weaker RU/RUB ruble and strong domestic supply amid a record harvest, analysts said on Monday, adding that the pace of transport shipping had accelerated after the storms.

Content of the article

* Prices for Russian wheat at 12.5% ​​protein and for supply to Black Sea ports in January were at $307 a ton free on board on Friday evening, down $5 from the previous week, agricultural consultancy IKAR said in a note.

* All three markets found support in weekly export inspections. Exporters prepared 1.75 million tonnes of soybeans for export in the week ended Dec. 22, near the upper end of analyst estimates of 1.2 million to 1.86 million tonnes.

* Maize export inspections of 856,606 tonnes were near the top of trade expectations of 500,000-900,000 tonnes, while wheat inspections reached 280,554 tonnes, in line with forecasts of 175,000-450,000 tonnes.

* Large speculators reduced their net long position in CBOT corn futures in the week to Dec. 20, regulatory data showed Friday.

Content of the article

* The Commodity Futures Trading Commission’s Weekly Trader Commitments Report also showed that non-trading traders, a category that includes hedge funds, reduced their net short position in CBOT wheat and increased their net long position in wheat. soy.

MARKET NEWS

* The S&P 500 and Nasdaq closed lower on Tuesday after the release of US economic data at the start of a shortened holiday week while bond yields rose after China announced it would scrap its COVID quarantine rule -19 for incoming travellers.

DATA/EVENTS (GMT) No major data/events scheduled for Wednesday 28 December (Reporting by Naveen Thukral; Editing by Krishna Chandra Eluri)