IKAR in Mass and Industry Media

Soybeans rise from 1-week low on slow US harvest; wheat firms

Reuters

SINGAPORE: Chicago soybean futures rose on Tuesday, recovering from last session's over one-week low, as a US government report showed the harvest across the Midwest lagged expectations following heavy rains.

Corn ticked higher after suffering its biggest daily loss in two weeks in the previous session, while wheat recouped some of Monday's sharp fall.

Chicago Board of Trade most-active soybean contract had climbed 0.3 percent to $9.48 a bushel by 0346 GMT, having closed down 1 percent on Monday when the market hit its lowest since Sept. 15.

Corn advanced 0.1 percent to $3.29-1/4 a bushel, having closed down 2.2 percent in the previous session, while wheat added 0.3 percent to $3.97 a bushel after closing down 2.2 percent on Monday.

"Heavy rains in the US Midwest have slowed the harvest progress for soybeans and corn," said Kaname Gokon at brokerage Okato Shoji in Tokyo.

"It needs to stop raining there so that farmers can get the crop out otherwise we will see yield losses and quality issues."

The US Department of Agriculture said the corn harvest was 15 percent complete and the soybean harvest 10 percent complete. Analysts polled by Reuters had estimated the corn harvest at 17 percent complete and soybeans 11 percent harvested.

The average pace of harvest at this time of the year is 13 percent for soybeans and 19 percent for corn.

Heavy showers in recent days waterlogged fields in parts of northern Iowa, Minnesota and Wisconsin. Rivers flooded in parts of Iowa, forcing corn and soy processors to shut down in Cedar Rapids, while at least three locks on the Mississippi River were expected to close.

Russian wheat export prices rose last week for the first time since mid-August, buoyed by demand from Egypt after it dropped its policy of not importing wheat containing the ergot fungus, agricultural consultancy IKAR said.

Commodity funds were net sellers of CBOT corn, soybean and wheat futures contracts on Monday. They also were net sellers of soymeal and soyoil.

06.10.16

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