Chicago | Reuters — U.S. soybean futures rose on Monday, rebounding from a sharp drop on Friday, on fresh export deals with China and rising concerns that rains in the U.S. Midwest could lower crop quality just ahead of harvest, traders said.
The adverse weather also supported corn futures while wheat futures were mixed. The most-active Chicago Board of Trade soft red winter wheat contracts eased slightly. K.C. hard red winter wheat contracts were slightly higher while MGEX spring wheat futures soared to a 10-week high, also due to concerns about weather damaging the crop.
“The week ahead continues to put rain where it is needed the least, and away from the areas that need it the most,” Charlie Sernatinger, global head of grain futures at ED+F Man Capital, said in a note to clients.
Chinese importers bought about 10 cargoes of U.S. soybeans on Monday, or about 600,000 tonnes, for shipment from Pacific Northwest export terminals from October to December, two traders with direct knowledge of the deals said.
Over the weekend, China’s senior agricultural representative in recent U.S.-China trade talks told state-backed media group Yicai that last week’s meetings between the world’s two largest economies achieved a “good outcome.” Soybean prices had fallen sharply on Friday after Chinese agriculture officials abruptly canceled a visit to U.S. farm states.
Chicago Board of Trade November soybean futures settled up 9-3/4 cents at $8.92-1/2 a bushel (all figures US$).
CBOT December corn futures were up 2-1/2 cents at $3.73-1/4 a bushel after hitting resistance near last week’s high of $3.74-3/4 a bushel.
Traders were waiting for the U.S. Agriculture Department’s weekly update on crop progress and conditions on Monday afternoon.
“The trade is anxious to see more harvest results but relentless fall rains are becoming problematic for many in the Midwest,” Matt Zeller, director of market information at INTL FCStone, said in a note to clients. “The 2019 growing season appears to be going out just as it came in — a wet and difficult campaign for most U.S. Corn Belt farmers.”
CBOT December soft red winter wheat was down 1-1/4 cent at $4.83 a bushel. K.C. December hard red winter wheat was one cent lower at $4.06-1/2 a bushel and MGEX December spring wheat was 13 cents higher at $5.37-1/4 a bushel.
MGEX spring wheat peaked at $5.39 a bushel, the highest for the front-month contract since July 15.
— Reporting for Reuters by Mark Weinraub in Chicago; additional reporting by Naveen Thukral in Singapore and Nigel Hunt in London.