Argentine weather helps soybeans extend advances
In spite of sluggish U.S. sales to China. Chicago soybean futures gained further ground on Wednesday. As the market was supported by Argentina’s lack of rain.
Wheat prices increased as a result of worries about crop damage in the US. The CBOT’s most active soybean contract up 0.2% to $14.81 per bushel. Wheat increased 0.4% to $7.53-1/2 per bushel. And corn (CV1) increased 0.2% to $6.53 per bushel.
Although the world’s top exporter of processed soy has been affected by a historic drought that has stopped many farmers from planting. Rains that fell in some areas of Argentina’s maize and soybean growing regions over the weekend have improved crop hopes. Brazil, the largest soybean exporter in the world, is far less affected by the dry weather and is anticipated to start harvesting soybeans by the end of January.
According to the General Administration of Customs, China, the largest consumer of soybeans in the world. Imported 3.38 million tonnes of the oilseed from the United States last month. Down from 3.63 million tonnes a year earlier.
Winter wheat harvests in areas of the Great Plains without protective snowcover may be harmed if temperatures in the United States fall significantly below freezing. On Tuesday, dealers reported that commodity funds were net buyers of CBOT soybean, soyoil, corn, wheat, and soymeal futures contracts.
In a minor reversal of a four-day decline, U.S. stocks ended higher on Tuesday. But the dollar lost strength and bond yields rose as a result of the Bank of Japan’s unexpected policy change. On Wednesday, soybean futures were trading at close to their best levels in three months. About $14.8 per bushel, supported by the lack of rain in Argentina and an increase in oil prices. Despite a slowing U.S. economy.
Soybean Sales to China had little profit
The weekend’s rains in some areas of Argentina’s soybean-growing regions have improved crop hopes, but the country, which is the world’s top supplier of processed soy, has been struck by a historic drought that has made it difficult for many farmers to plant.
As a result of increased demand for biofuel feedstock due to rising oil costs, soybean prices have risen. The world’s largest consumer of soybeans, China, imported 3.38 million tonnes of the oilseed from the US last month, down from 3.63 million tonnes a year earlier. This was due to slower increases in industrial production.
In November, China’s industrial output growth slowed to a six-month low. According to the General Administration of Customs, China, the largest consumer of soybeans in the world, imported 3.38 million tonnes of the oilseed from the United States last month, down from 3.63 million tonnes a year earlier.
Winter wheat harvests in areas of the Great Plains without protective snowcover may be harmed if temperatures in the United States fall significantly below freezing.
