GRAINS-Chicago Soy increases on oil rebound, but wheat and corn decline on abundant supply outlook
Chicago soybean and soyoil contracts edged up on Wednesday as investors watched the fragile ceasefire agreement between Iran and Israel.
After three consecutive sessions of losses, the most active soybean contract gained 0.24% and reached $10.39-4/8 per Bushel. Soyoil rose 0.78% to 53.02 Cents per Pound.
"Soybean oil and soybeans are taking a break as they have overshot to the downside," stated Ole Houe of IKON Commodities, Sydney's head of advisory services.
After plunging in the previous two sessions, oil prices have edged up, supporting soyoil. Soyoil is often tracked by crude, as it's used to make biofuels, which are a replacement for fossil fuel.
Houe stated that the crude oil market had stabilised to levels slightly higher than those before the Israel-Iran War, which has given him some confidence. "We don't have to worry about a big drop for now," he said.
Forecasters expect warm, rainy weather to help crop development in the U.S. Midwest in the next few days.
Corn prices fell 0.06%, to $4.16 per bushel. This is near the lowest price of this year, due to favorable weather conditions in the U.S. Corn Belt, and good crop prospects worldwide.
Agroconsult, an agribusiness consulting firm, said that Brazilian farmers produced a record number of 123.3 million tons of second corn.
The second corn that Brazilian farmers are harvesting right now will make up about 80% this year of the national production. The second half is when it's mainly exported, and competes with U.S. suppliers of corn on global markets.
Wheat prices fell 0.45%, to $5.49-4/8 per bushel. This was due to a stronger production outlook in the Northern Hemisphere as well as a faster harvest.
Argus Media has raised its forecast of Russia's wheat production in 2025-26 to 84.8 millions tons. This is up from 81.3million tons a year earlier. Reporting by Ella Cao, Lewis Jackson and Sumana Nandy; Editing by Harikrishnan Nair & Sumana Nandy
(source: Reuters)
