Thu Dec 6, 2012
* Soybeans hit near 1-month high
* Soybeans firm on Chinese demand, South American weather concerns
* Corn falls on profit taking
By Colin Packham
SYDNEY, Dec 6 (Reuters) - U.S. soybeans rose on Thursday to their highest in almost a month, lifted by expectations of a jump in Chinese demand and concerns about supplies from Argentina, where unfavourable wet weather is threatening crop yields.
Corn fell, giving back some of the gains from the previous session as traders locked in profits, while wheat was little changed.
Chicago Board of Trade January soybeans rose 0.78 percent to $14.90-3/4 a bushel by 0303 GMT, just shy of the session high of $14.91 a bushel which was its loftiest since November 9. Soybeans rose 1.6 percent on Wednesday, its biggest daily jump in more than a week.
"Soybeans are enjoying some strong fundamentals," said Lynette Tan, investment analyst at Phillip Futures in Singapore.
"There are expectations of increased exports to China and there are weather concerns in South America, which may lower production."
March corn fell 0.13 percent to $7.56-3/4 a bushel, giving back some of Wednesday's gains when it rose 0.8 percent.
March wheat little changed at $8.59-1/2 a bushel after closing 0.4 percent up in the previous session.
CHINESE BUYING SPREE?
Traders said market talk suggested China, the world's largest consumer of the oilseed, had acquired up to six cargoes this week from sellers in the Pacific Northwest, and that it would soon seek more volumes.
Exporters in the world's biggest soybean supplier the United States have been competing with domestic processors for soybeans on the cash market as processors are currently reaping high profit margins from crushing raw soybeans into soymeal, a key source of protein in animal feed, and soyoil, used in foods and soy-based biodiesel fuel.
This increase in demand comes as wet weather in third-largest soybean supplier Argentina continues to delay plantings, which could threaten yields. The Commodity Weather Group on Wednesday forecast more rain for up to the next two weeks.
Soybeans also got additional support after the senate in Paraguay, the world's No. 4 supplier of the oilseed, approved a bill on Tuesday that would impose a 10 percent tax on soybean exports despite objections from farmers.
Grains prices at 0303 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 859.50 -0.50 -0.06% +0.35% 875.64 42
CBOT corn 756.75 -1.00 -0.13% +0.63% 746.71 59
CBOT soy 1490.75 11.50 +0.78% +2.42% 1467.94 72
CBOT rice $15.55 -$0.01 -0.06% +0.88% $15.09 75
WTI crude $87.81 -$0.07 -0.08% -0.78% $86.82 51
Currencies
Euro/dlr $1.306 -$0.001 -0.07% -0.27%
USD/AUD 1.047 0.002 +0.14% -0.01%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Miral Fahmy)
* Soybeans hit near 1-month high
* Soybeans firm on Chinese demand, South American weather concerns
* Corn falls on profit taking
By Colin Packham
SYDNEY, Dec 6 (Reuters) - U.S. soybeans rose on Thursday to their highest in almost a month, lifted by expectations of a jump in Chinese demand and concerns about supplies from Argentina, where unfavourable wet weather is threatening crop yields.
Corn fell, giving back some of the gains from the previous session as traders locked in profits, while wheat was little changed.
Chicago Board of Trade January soybeans rose 0.78 percent to $14.90-3/4 a bushel by 0303 GMT, just shy of the session high of $14.91 a bushel which was its loftiest since November 9. Soybeans rose 1.6 percent on Wednesday, its biggest daily jump in more than a week.
"Soybeans are enjoying some strong fundamentals," said Lynette Tan, investment analyst at Phillip Futures in Singapore.
"There are expectations of increased exports to China and there are weather concerns in South America, which may lower production."
March corn fell 0.13 percent to $7.56-3/4 a bushel, giving back some of Wednesday's gains when it rose 0.8 percent.
March wheat little changed at $8.59-1/2 a bushel after closing 0.4 percent up in the previous session.
CHINESE BUYING SPREE?
Traders said market talk suggested China, the world's largest consumer of the oilseed, had acquired up to six cargoes this week from sellers in the Pacific Northwest, and that it would soon seek more volumes.
Exporters in the world's biggest soybean supplier the United States have been competing with domestic processors for soybeans on the cash market as processors are currently reaping high profit margins from crushing raw soybeans into soymeal, a key source of protein in animal feed, and soyoil, used in foods and soy-based biodiesel fuel.
This increase in demand comes as wet weather in third-largest soybean supplier Argentina continues to delay plantings, which could threaten yields. The Commodity Weather Group on Wednesday forecast more rain for up to the next two weeks.
Soybeans also got additional support after the senate in Paraguay, the world's No. 4 supplier of the oilseed, approved a bill on Tuesday that would impose a 10 percent tax on soybean exports despite objections from farmers.
Grains prices at 0303 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 859.50 -0.50 -0.06% +0.35% 875.64 42
CBOT corn 756.75 -1.00 -0.13% +0.63% 746.71 59
CBOT soy 1490.75 11.50 +0.78% +2.42% 1467.94 72
CBOT rice $15.55 -$0.01 -0.06% +0.88% $15.09 75
WTI crude $87.81 -$0.07 -0.08% -0.78% $86.82 51
Currencies
Euro/dlr $1.306 -$0.001 -0.07% -0.27%
USD/AUD 1.047 0.002 +0.14% -0.01%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Miral Fahmy)
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