Chicago | Reuters — U.S. soybean futures rallied on Tuesday, supported by a report showing processors were busier than expected during November, adding further pressure to a tight supply base, traders said.
The strength in soybeans pulled corn higher, which closed in positive territory after trading lower for much of the session. Wheat futures also were firm, recovering from Monday’s sharp sell-off on technical buying and bargain hunting.
U.S. soy processors crushed 181.018 million bushels of soybeans in November, their third largest monthly crush on record, according to the National Oilseed Processors Association. The report also showed the highest monthly soymeal export total in nearly eight years.
Chicago Board of Trade January soybean futures gained 14-3/4 cents to close at $11.84-1/4 a bushel (all figures US$). CBOT March corn rose 3/4 cent to $4.24-3/4 a bushel.
Investors were closely monitoring weather developments in key production areas of Brazil and Argentina after dry weather early in the growing season raised concerns about the prospects for both the corn and soybean crops.
“Uncertainty over the impact of this month’s weather will likely hang over the markets for a few more weeks,” StoneX chief commodities economist Arlan Suderman said in a note to clients. “Some crop losses are expected, but the scope of losses is still being determined.”
CBOT March soft red winter wheat futures ended up 3-1/4 cents at $5.99-3/4 a bushel, finding technical support at its 20-day moving average.
On Tuesday, Russian Prime Minister Mikhail Mishustin signed orders to implement a wheat export tax and grain export quota, aimed at stabilizing food prices.
Top wheat buyer Egypt bought 120,000 tonnes of Ukrainian wheat and 115,000 tonnes of Romanian wheat in an international tender on Tuesday.
The Egyptian wheat tender on Tuesday showed fewer offers of Russian wheat than in previous tenders and at much higher prices.
— Reporting for Reuters by Mark Weinraub; additional reporting by Gus Trompiz in Paris and Colin Packham in Sydney.