MARKET DEVELOPMENT
GRAINS-Soybeans Rise for 2nd Day as Demand Supports, Corn Near One-Week High
GRAINS-Soybeans Rise for 2nd Day as Demand Supports, Corn Near One-Week High
* Soybeans rise for five out six sessions on demand
* Prices capped by expectations of record U.S. output
* Bullish weekly ethanol data underpins corn futures
21/10/2016 (Reuters) - Chicago soybean futures rose for a second session on Thursday, trading near a three-week high reached earlier this week with prices underpinned by firm demand, led by top importer China.
Corn climbed to its highest in almost one week as bullish data on ethanol supported the market while wheat ticked higher.
The Chicago Board Of Trade most-active soybean contract rose 0.3 percent to $9.84-3/4 a bushel by 0257 GMT, having climbed 0.9 percent on Wednesday.
Corn gained 0.2 percent to $3.58-1/4 a bushel and wheat added 0.1 percent to $4.20-1/2 a bushel.
"Demand is supporting soybean prices but the market seems to be reading too much into this seasonally strong demand," said Rajesh Singla, head of agriculture research at Societe Generale.
"We are expecting record yields in the U.S., very high supply pressure will prevent the market from rallying."
China, the world's top soybean importer, has been snapping up U.S. soybean cargoes in recent weeks.
The U.S. Department of Agriculture confirmed that private exporters sold 185,000 tonnes of U.S. soybeans to unknown destinations for delivery in the 2016/17 marketing year.
Corn is drawing support from bullish weekly data on ethanol, which is made from corn. The U.S. Energy Information Administration said ethanol production last week increased by 36,000 barrels per day while stocks of the biofuel fell by 351,000 barrels.
In news, Argentina's portside processing plants are expected to increase output of biodiesel as a drop in soyoil demand has pushed them to seek more profitable alternatives, industry officials said on Wednesday.
China has not bought soyoil from Argentina so far this year, as it moves toward importing raw soybeans to be crushed on the mainland. This has shifted Argentine exports toward India, which also has access to cheaper palm oil.
Commodity funds were net buyers of CBOT corn and soybean futures contracts on Wednesday, traders said.
Grains prices at 0257 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 420.50 0.25 +0.06% +0.12% 405.58 65
CBOT corn 358.25 0.75 +0.21% +1.27% 341.05 71
CBOT soy 984.75 3.25 +0.33% +1.26% 962.10 67
CBOT rice 10.27 -$0.14 -1.30% -1.44% $9.97 56
WTI crude 51.41 -$0.19 -0.37% +2.23% $47.60 65
Currencies
Euro/dlr $1.098 $0.001 +0.05% +0.00%
USD/AUD 0.7692 -0.003 -0.38% +0.39%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
hundredweight
RSI 14, exponential
* Prices capped by expectations of record U.S. output
* Bullish weekly ethanol data underpins corn futures
21/10/2016 (Reuters) - Chicago soybean futures rose for a second session on Thursday, trading near a three-week high reached earlier this week with prices underpinned by firm demand, led by top importer China.
Corn climbed to its highest in almost one week as bullish data on ethanol supported the market while wheat ticked higher.
The Chicago Board Of Trade most-active soybean contract rose 0.3 percent to $9.84-3/4 a bushel by 0257 GMT, having climbed 0.9 percent on Wednesday.
Corn gained 0.2 percent to $3.58-1/4 a bushel and wheat added 0.1 percent to $4.20-1/2 a bushel.
"Demand is supporting soybean prices but the market seems to be reading too much into this seasonally strong demand," said Rajesh Singla, head of agriculture research at Societe Generale.
"We are expecting record yields in the U.S., very high supply pressure will prevent the market from rallying."
China, the world's top soybean importer, has been snapping up U.S. soybean cargoes in recent weeks.
The U.S. Department of Agriculture confirmed that private exporters sold 185,000 tonnes of U.S. soybeans to unknown destinations for delivery in the 2016/17 marketing year.
Corn is drawing support from bullish weekly data on ethanol, which is made from corn. The U.S. Energy Information Administration said ethanol production last week increased by 36,000 barrels per day while stocks of the biofuel fell by 351,000 barrels.
In news, Argentina's portside processing plants are expected to increase output of biodiesel as a drop in soyoil demand has pushed them to seek more profitable alternatives, industry officials said on Wednesday.
China has not bought soyoil from Argentina so far this year, as it moves toward importing raw soybeans to be crushed on the mainland. This has shifted Argentine exports toward India, which also has access to cheaper palm oil.
Commodity funds were net buyers of CBOT corn and soybean futures contracts on Wednesday, traders said.
Grains prices at 0257 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 420.50 0.25 +0.06% +0.12% 405.58 65
CBOT corn 358.25 0.75 +0.21% +1.27% 341.05 71
CBOT soy 984.75 3.25 +0.33% +1.26% 962.10 67
CBOT rice 10.27 -$0.14 -1.30% -1.44% $9.97 56
WTI crude 51.41 -$0.19 -0.37% +2.23% $47.60 65
Currencies
Euro/dlr $1.098 $0.001 +0.05% +0.00%
USD/AUD 0.7692 -0.003 -0.38% +0.39%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
hundredweight
RSI 14, exponential