SINGAPORE: Buoyed by a slower pace of planting in South America and expectations of strong demand, US soybeans edged higher for 4th out of five sessions.
Rains this week in Argentina’s Pampas grains belt are expected to delay soy and corn planting, which had already fallen behind schedule due to heavier-than-normal showers earlier in the month.
More rain over Brazil’s soy belt over the past week allowed farmers to plant 46 percent of their planned crop as of Friday, up from 29 percent a week earlier. But planting is still behind the 59 percent completed a year ago as well as the 61 percent five-year average.
“Soybean demand is strong and will be strong but there is a lot of supply around too,” said Ole Houe, analyst at Sydney-based brokerage IKON Commodities.
“At the moment it feels like traders are grabbing every opportunity to support soybeans.” Chicago Board of Trade front-month soybeans had risen 0.2 percent to $10.30 a bushel by 0257 GMT.
The 2014 US corn crop, while still a record, will be slightly below recent market expectations according to data released on Monday, while soybean production continues to rise.
The US Department of Agriculture trimmed its corn crop estimate to 14.407 billion bushels from 14.475 billion in October, and lowered ending stocks to 2.008 billion bushels from 2.081 billion. Traders had leaned toward higher estimates.
The agency estimated the US soybean crop at a record 3.958 billion bushels, up less than 1 percent from October and just below trade forecasts averaging 3.967 billion.
The crop is inching closer to the once unthought-of 4 billion-bushel mark.
US farmers have harvested 80 percent of the corn crop, up from 65 percent a week ago and matching the five-year average, the USDA said after the market closed on Monday.
The soybean harvest was 90 percent complete, compared with 83 percent a week ago and a five-year average of 91 percent.
Besides the USDA reports, traders were monitoring a winter storm moving across the Dakotas and into the Great Lakes region that could bring significant snowfall.
