PARIS: Chicago Board of Trade soybean futures rose on Friday to a new four-month high as stronger than expected weekly exports and an easing dollar provided support as trading resumed after a holiday closure.
Soybeans remained firm despite easing soyoil futures, which gave back some of the huge gains from Wednesday when vegetable oils were fired up by increased US biofuel targets.
Corn and wheat edged lower as higher than anticipated weekly export sales failed to give impetus to cereals in the face of hefty global supplies.
Activity was light as Friday marked a shortened session in between Thursday’s Thanksgiving holiday and the weekend, and traders said the expiry of options on December futures at the close encouraged technical adjustments.
CBOT January soybeans were up 4.50 cents at $10.38-1/2 per bushel by 1701 GMT, off an earlier four-month high of $10.39-3/4. December corn was down 2 cents at $3.48-3/4 a bushel and December wheat was down 3-1/2 cents at $3.98.
The US Department of Agriculture reported weekly US export sales of 1,898,600 tonnes, above trade expectations ranging from 1.2 million to 1.5 million tonnes.
“Soybean exports were very strong and palm oil was up earlier in Malaysia so some gains were expected in soybeans,” a European-based trader said. “Crude oil is down though and that is now weighing on vegetable oils.”
Most-active CBOT January soyoil futures were down 0.54 cents at 36.60 cents per lb, after surging nearly 7 percent on Wednesday. Soyoil is used to make biodiesel, while fellow biofuel ethanol is mainly derived from corn in the United States.
Corn again showed little impetus from the raised biofuel targets or from bigger than expected weekly corn export sales of 1,688,800 tonnes, above a range of trade expectations for 900,000 to 1.2 million tonnes.
The International Grains Council on Thursday raised its forecasts for world corn and wheat production in 2016/17 to record highs, projecting this would also push grain stocks to their highest-ever levels. Wheat similarly edged lower despite US export sales of 712,400 tonnes that topped trade estimates ranging from 350,000 to 550,000 tonnes.
Heavy rain forecast in the week ahead in the US Delta region could ease drought conditions affecting soft red winter wheat, Terry Reilly, analyst with Futures International, said. Technical trading was also expected to fuel hesitant moves.
“The holiday trade is pretty thin and a lot of people are still very focused on spreads, in particular the December-March corn spread,” Reilly said.
“People are rolling from December to March. They want to get out ahead of the first notice day (on Nov. 30) delivery period, and ahead of options expiration today.”
