GRAINS-Soybeans extend gains ahead of U.S. supply-demand report

Chicago soybean futures rose for a second straight session on Thursday as investors took positions ahead of a key U.S. supply-demand report, with strong demand led by China also underpinning prices.

Corn and wheat extended gains into a second session.

“We have the USDA report later in the day and China has been buying U.S. beans as a part of its commitment under the trade deal with Washington,” said Jogesh Virk, a director at Brisbane-based grains trading firm Venedor International. “It is supporting U.S. beans and corn prices.”

The most-active soybean contract on the Chicago Board Of Trade (CBOT) was up 0.5% at $11.63-3/4 a bushel by 0324 GMT, after firming 1.1% on Wednesday.

Corn added 0.2% to $4.24-1/2 a bushel and wheat gained 0.3% to $5.84-3/4 a bushel.

Improving crop weather in South America tempered concerns about tightening global corn and soybean supplies.

The U.S. Department of Agriculture’s (USDA) world supply and demand report to be issued at 1700 GMT is expected to show smaller South American crops and tighter corn and soybean supplies.

The USDA on Wednesday confirmed private sales of 257,071 tonnes of U.S. corn to Mexico, the latest in a series of large purchases by major importers.

China produced 260.67 million tonnes of corn in 2020, the National Bureau of Statistics said, barely slipping from last year’s volume despite weather damage just before the harvest.

China’s corn output is being closely watched amid a growing deficit in the country that has driven up prices to record levels.

Commodity funds were net buyers of CBOT corn, wheat, soybean, soymeal and soyoil futures contracts on Wednesday, traders said.

Reuters

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