Chicago | Reuters—U.S. soybean futures rebounded on late-session technical buying to end firm on Thursday after concerns about a lack of sales to top importer China had dragged the market to 3-1/2 week lows.
Technical buying also supported corn futures despite expectations of a record-large U.S. harvest this autumn. Wheat, meanwhile, fell to fresh contract lows on ample global supplies.
Corn and soybean prices have been generally weakening this week despite concerns that U.S. government production forecasts have not adjusted for yield declines from disease pressure in pockets of the Midwest farm belt.
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Still, the corn harvest is projected to shatter previous records while the soy crop is likely to be among the largest ever.
A lack of new-crop U.S. soybean purchases by China, against a backdrop of trade tensions between Beijing and Washington, is clouding the demand outlook and keeping futures anchored. A summit of leaders from the “Global South” led by Chinese President Xi Jinping in Beijing this week further stoked doubts of a swift resolution to the trade conflict.
“There’s all the talk that maybe the crop is a little bit smaller than we were thinking at the beginning of August, but if we’re not going to have any export business to China, well, it doesn’t matter,” said Ted Seifried, chief strategist for Zaner Ag Hedge.
Chicago Board of Trade November soybeans SX25 settled 1-1/2 cents higher at $10.33 a bushel after earlier falling to the lowest level since August 12. The contract broke below chart support at its 50-, 100- and 200-day moving averages, but finished the day above the key technical levels.
December corn CZ25 was 1-3/4 cents higher at $4.19-3/4 a bushel after holding chart support at its 50-day moving average.
CBOT December wheat WZ25 hit a contract low of $5.14-1/2 a bushel and finished down 2-1/2 cents at $5.19-1/2. The lightly traded spot September contract WU25 came within 3/4 cent of its contract low while all other contracts hit lifetime lows.
—Additional reporting by Gus Trompiz in Paris and Bernadette Christina in Jakarta.
