Chicago soybean futures prices rose again on Monday, by about 3%, as reduced plantings and inventories in the United States raise supply concerns.
Maize firmed after hitting a two-and-a-half-year low as lower prices boosted import demand, particularly in Asia. Wheat followed the rise in corn.
“Markets are still surprised by the sharp reduction in planted acreage estimates in the United States on Friday,” said a European trader. The Chicago Board of Trade’s most active soybean rose 3.1% to $13.85-3/4 a bushel at 1044 GMT, after hitting its highest level since June 15 at 13.91 earlier on Monday. -3/4 dollars a bushel.
Corn was up 1.6% at 502-3/4 a bushel, after hitting 2½-year lows on Friday and earlier in the day on Monday. Wheat rose 0.1% to $6.52-1/4 a bushel.
Soybeans rose more than 6% on Friday after the U.S. Department of Agriculture (USDA) said U.S. farmers had planted 83.5 million acres of soybeans, 4 million acres less than its March forecast and less than the lower end of a range of analyst estimates.
For corn, the USDA estimate of 94.01 million acres was up more than 2 million acres from its March forecast and higher than analysts’ estimates.
There are signs that low prices are boosting demand for corn, with large import bids issued by buyers in South Korea on Monday and a large private purchase reported over the weekend.
Traders have been monitoring reports that efforts are being made to extend the agreement on a safe shipping channel for Ukrainian grain, which expires in mid-July.
According to the Financial Times, the European Union is considering a proposal for the Russian Agricultural Bank to set up a subsidiary to reconnect to the global financial network, as a token of appreciation to Moscow.
With the bank under sanctions, the aim is to preserve the Black Sea Grains Agreement, which allows Ukraine to export foodstuffs to world markets, according to the newspaper. (Reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore; writing by Rashmi Aich and David Evans)
2023-07-03 10:56:17
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