By Mark Weinraub
CHICAGO, Oct 8 (Reuters) – U.S. soybean futures rose on Friday, with strength in the global vegetable oil market and energy sector underpinning prices despite adequate supplies and harvest pressure, traders said.
The corn market also was firm, but gains were kept in check as investors waited for the U.S. Agriculture Department’s production forecast on Tuesday.
Wheat futures were firm, with contracts for higher-protein varieties leading the market up after harvest shortfalls in key production areas.
Malaysian palm oil hit a record high of nearly 5,000 ringgit ($1,197.32) a tonne, setting the contract for a 10.2% weekly surge tracking Dalian prices, helped by a tight supply outlook.
“We are catching a bid in the beans off of the record price in palm oil,” said Greg Grow, director of agribusiness at Archer Financial Services. “That is supporting the soy complex in the moment despite harvest.”
At 9:33 a.m. CDT (1433 GMT), Chicago Board of Trade November soybean futures SX1 were up 10 cents at $12.57-1/4 a bushel and CBOT December corn CZ1 was up 1-1/2 cents at $5.35-1/2 a bushel.
Both corn and soybeans received support from hopes of a pick-up in buying by China following the country’s return from
a holiday week. But both commodities were trading below overnight highs after no fresh deals were reported by USDA on Friday morning.
CBOT December soft red winter wheat WZ1 was 1/4 cent higher at $7.41-1/2 a bushel, while MGEX spring wheat for December delivery MWEZ1 was up 4-3/4 cents at $9.47 a bushel. The front-month MGEX contract MWEc1 was near its highest on a continuous basis since November 2012.
Wheat markets have been underpinned by a run of import tenders and reports Russia could further curb exports. GRA/TEND
“Continued buying activity from key importing nations should continue to add support to the global grain complex,” ADM Agriculture Ltd said in a note.
(Additional reporting by Naveen Thukral in Singapore and Gus Trompiz in Paris; Editing by Dan Grebler)
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