Soybeans climb on bargain-buying support; corn and wheat also gain

August 8, 2024

Key points:

• Soybeans increased by 0.2% to $10.20-1/4 a bushel, supported by bargain-buying.
• Corn and wheat futures saw modest gains, each rising by 0.1%.
• China’s soybean imports increased by 2.9% in July, influencing global supply dynamics.

Chicago soybeans gained 0.2%, reaching $10.20-1/4 a bushel as of 0025 GMT, marking their first rise in three sessions. Corn futures edged up by 0.1% to $4.01 a bushel, and wheat inched higher by 0.1% to $5.38-3/4 a bushel.

Bargain-buying boosts soybeans despite U.S. conditions, shifting Chinese demand

Soybean prices faced challenges due to favourable growing conditions in the U.S. Midwest, coupled with reduced purchases from China. Despite these headwinds, bargain-buying has provided some support to the market. 

See: Soybean on the rise as seen on the VT Markets app.

China’s soybean imports rose by 2.9% in July compared to the previous year, driven by lower prices and concerns over potential trade tensions if Donald Trump returns as U.S. president. However, the country has been buying larger volumes from Brazil, leading to an oversupply amid weak animal feed demand.

Also read: Wheat, corn, and soybeans steady after US crop conditions improve

Labour strike and frost threats disrupt Argentina’s soy supply

In Argentina, a labour strike by oilseed industry unions has disrupted shipments from key ports, impacting global soymeal and soy oil supply. Additionally, the Buenos Aires Grains Exchange reported that cooler-than-expected temperatures next week could cause frosts, potentially damaging crops.

Chicago wheat prices edged lower on Wednesday as U.S. export demand showed signs of easing. However, uncertainty about the global crop’s size and quality has kept a floor under prices.

France, the EU’s largest soft wheat producer, expects its crop to shrink to its lowest level in 41 years, with a projected output of 25.17 million metric tons due to heavy rain affecting crop area and yields.

Wall Street falls amid bond auction and central bank caution

Wall Street equity indexes closed lower after a volatile session on Wednesday. A bond auction pushed Treasury yields higher, and the dollar rose against the yen following cautious comments from central bankers.

You might be interested: US stock market rebound after major market selloff during recession fears

For soybeans, the market could see continued support from bargain-buying, though favourable U.S. crop conditions and slow demand from China may keep gains in check.

Corn and wheat prices may remain stable with slight upward movement, influenced by U.S. export dynamics and global crop uncertainties.

Watch for developments in Argentina’s labour strike and potential frost conditions, as these could impact supply and pricing.

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