Chicago | Reuters — U.S. soybean futures firmed on Monday in a modest recovery from last week’s two-month low as crude oil markets rebounded and lifted soyoil prices more than three per cent, traders said.
Wheat also gained as the U.S. dollar softened and as weekly export inspections topped trade expectations.
Corn was flat to weaker, capped by forecasts for a large U.S. crop and worries over demand from biofuel producers after news last week that the Environmental Protection Agency would recommend reducing federal biofuel blending mandates.
Grain and oilseed futures had fallen sharply last week as worries about global economic growth and rising coronavirus infections pressured broader markets. Crude oil and metals climbed on Monday and global equities markets rose as investor concerns that the U.S. Federal Reserve would soon begin changing its accommodative monetary stance faded.
“The macros are taking the foot off the throat of commodities today, except for corn. Traders are still very nervous about the biofuel RINs and what kind of exclusions will be given to refiners,” said Mike Zuzolo, president of Global Commodity Analytics.
Chicago Board of Trade December corn fell 1-1/2 cents to $5.35-1/2 a bushel, after hitting a six-week low in the session (all figures US$). November soybeans gained two cents to settle at $12.92-3/4 a bushel.
CBOT September wheat rose 5-1/2 cents to $7.19-3/4 a bushel.
The U.S. Department of Agriculture (USDA) said on Monday that 657,854 tonnes of U.S. wheat were inspected for export last week, higher than expected. Corn and soybean inspections were in line with trade forecasts.
Late last week, Pro Farmer newsletter forecast U.S. corn and soybean production above the latest USDA projections.
USDA is due to update weekly crop conditions later on Monday. Analysts, on average, expect corn and soybean conditions to decline slightly.
— Reporting for Reuters by Karl Plume in Chicago; additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore.