Soybeans at one-week top on strong demand; wheat, corn firm
Chicago soybeans continued to rise for a fourth session on October 24, reaching a one-week high at $10.00 a bushel, supported by strong demand and easing concerns over potential trade tensions with China, as polls show U.S. Vice President Kamala Harris leading over Donald Trump. Wheat and corn also gained, while U.S. soybean export premiums hit a 14-month high amid heavy shipping activity.
SINGAPORE: Chicago soybeans rose for a fourth consecutive session on Thursday to a one-week high, underpinned by strong demand and as U.S. Vice President Kamala Harris’ lead over Republican Donald Trump in some polls eased worries over a potential trade war.
Wheat and corn gained ground.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.2% to $9.99-1/2 a bushel, as of 0011 GMT, having reached its highest since Oct. 16 at $10.00 a bushel earlier in the session.
* Wheat added 0.2% to $5.79-1/2 a bushel and corn rose 0.1% to $4.19-1/2 a bushel.
* U.S. soybean export premiums are at their highest in 14 months, as grain merchants race to ship out a record-large U.S. harvest ahead of the U.S. presidential election and fears of renewed trade tensions with top importer China.
* Harris led Trump by a 46%-43% margin in a Reuters/Ipsos poll published on Tuesday. Her lead in the six-day poll, which closed on Monday, reinforces the view that the race is extraordinarily tight with just two weeks left before the Nov. 5 U.S. presidential election. Some other polls have also shown Harris leading the former U.S. president.
* Increased tariffs on imports from China could spur retaliation from the leading soybean importer.
* Strong rains this week in Argentina have given a huge boost to the farming sector after a tough period of drought, “turning the game around” for corn and wheat farmers who had been facing deep losses, the Rosario grains exchange said on Wednesday.
* Wheat prices faced pressure from Russia’s recent efforts to regulate its grain trade.
* Russia, the world’s biggest wheat exporter, has proposed the creation of a grain exchange among BRICS countries – Brazil, Russia, India, China, and South Africa – which could later be expanded to trade other major commodities such as oil, gas and metals.
* Commodity funds were net buyers of CBOT corn, soybean and wheat futures contracts on Wednesday, traders said. Funds were net sellers of soymeal futures contracts and net even in soyoil futures contracts.
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