Grain futures rise as gold and commodities stabilize, while soybeans continue to climb.
Chicago soybean futures rose on Tuesday as traders struggled with teetering commodity markets and rising gold prices.
Wheat and corn also traded higher.
As of 0453 GMT, the most active soybean contract on Chicago?Board?of Trade was up 0.2% to $10.62-3/4 a Bushel. CBOT corn was up 0.3% and wheat rose 0.3%.
The rise in grain and soybean prices is related to the recovery of gold and silver. A sharp fall in the price of gold and silver has recently caused a pullback on the commodities market, according to a Shanghai analyst who requested anonymity.
Gold and silver recovered more than 2% after a sharp drop that was triggered?by the nomination of Kevin Warsh to be the next Fed Chair and by higher margin requirements for CME Group.
Oil prices plunged sharply on Monday as tensions between Iran and the United States de-escalated.
The market was impacted by the large global supply.
Brazil, in South America is currently harvesting a soybean crop that is expected to be record-breaking. After a recent surge of U.S. soy purchases, traders expect China to rely primarily on Brazil for its imports.
StoneX and the agribusiness consultancy Celeres have raised their estimates for Brazil's soybean crop in 2025/26, citing higher than expected yields. Brazil is the largest producer and exporter of oilseeds.
StoneX estimated Brazil's soybean production this season at 181.62 millions metric tons. This is up from 177.61million tons in the previous year -- an increase of 7.6% on a year-over-year basis.
Celeres forecast a record 181.3 millions tons, an increase of 5% from its previous estimate of 177.2 millions tons.
The analyst from Shanghai added that "lower wheat demand and increased global competition" can also affect contracts.
The third week in a row, the price of wheat exported from Russia has risen due to a stronger rouble, poor weather conditions at the ports and a strengthening of the rouble. Analysts do not expect any crop damage as a result of the cold snap that affected many parts.
(source: Reuters)
