U.S. soybean futures rose to their highest in almost two years on Thursday, while corn climbed to a 10-month peak with prices in agricultural markets underpinned by lower supplies.
Wheat rose amid concerns over rains on the U.S. Plains which threaten the hard red winter wheat crop which is getting ready for harvest. Chicago Board of Trade most-active soybean contract climbed 0.6 percent to $11.06-3/4 a bushel by 0326 GMT. Earlier in the session, the market touched its highest since July 2014 at $11.09-3/4 a bushel.
Corn gained 0.1 percent to $4.14-1/4 a bushel after hitting its highest since July at $4.15 a bushel and wheat rose 0.5 percent to $4.76 a bushel, having closed up 2 percent on Wednesday. Concerns over South American production have supported corn and soybean prices. “
There is a bullish trend as we are expecting strong demand for U.S. products, both soybeans and corn,” said Kaname Gokon at brokerage Okato Shoji in Tokyo. “Chinese pork prices are at record high, so they will need more corn and soybeans to boost pork production.”
Brazil’s cereals exporters association Anec cut its estimate for 2016 corn exports to 23 million tonnes, down 7 million tonnes from its April outlook. It also said soybean exports in May fell to 8.69 million tonnes from a record 10.3 million tonnes in April.
Argentina has seen rains ahead of harvest in April cause widespread damage to the soybean crop.
Additional support stemmed from China’s strong demand for soybeans, which are crushed to make soymeal, a protein rich animal feed ingredient, and cooking oil. Pork prices in China are climbing at a blistering pace despite government moves to cool markets in the world’s top consumer of the meat by selling chunks of its frozen reserves.
Government data released on Wednesday showed Chinese pork prices hit record levels this week, driven up as farmers hold back pigs from slaughter to rebuild herds following widespread culling in 2014 when prices were low.
Wheat has been buoyed by forecasts for rains across the southern U.S. Plains, which threatens production in the region. Commodity funds were net buyers of CBOT corn, soybean and wheat contracts on Wednesday. Trader estimates of net fund purchases in corn ranged from 13,000 to 15,000 contracts and 9,000 to 15,000 contracts in soybeans.
Estimates of fund buying in wheat ranged from 3,500 to 4,000 contracts.
