By Julie Ingwersen
CHICAGO, Might 11 (Reuters) – Benchmark U.S. soybean futures Sv1jumped above $16 a bushel on Tuesday for the primary time since 2012 as merchants targeted on tightening feed grain provides and dry climate in Brazil’s corn belt, merchants mentioned.
Corn and wheat futures additionally posted sharp positive factors, with close by contracts main the best way up. A weaker greenback .DXY lent help, making U.S. grains extra aggressive globally.
Chicago Board of Commerce July soybeans SN1 settled up 27-1/four cents at $16.14-3/four per bushel after reaching a contract prime at $16.25-1/2, the very best on a steady chart of the most-active soybean contract Sv1 since September 2012.
CBOT July corn CN1 ended up 10-1/2 cents at $7.22-1/four a bushel, hovering beneath a contract excessive set final week. July wheat WN1 rose 11-1/four cents to settle at $7.41-3/four a bushel.
Soybeans topped $16 on worries about dwindling provides of feed grains, together with soymeal and corn. The rally displays dry climate in Brazil which will curb corn manufacturing.
“The (corn) exports that Brazil would have been making in June, July and August usually are not going to be there. So these guys around the globe who wished to import corn from Brazil, they will be pressured to return to the U.S.,” mentioned Terry Roggensack, analyst with The Hightower Report.
Tightening corn provides ought to have an effect on competing feedstuffs as effectively, together with soybean meal. “The extra corn goes up, the extra beneficial the meal turns into,” Roggensack mentioned.
Merchants await Wednesday’s World Agricultural Provide and Demand Estimates (WASDE) report, during which the U.S. Division of Agriculture (USDA) will give its first international outlook for 2021/22 and replace its 2020/21 estimates.
Analysts surveyed by Reuters on common anticipated the USDA to decrease its estimate of Brazil’s 2020/21 corn manufacturing to 103.5 million tonnes, from 109 million in April. Others concern the determine finally may fall beneath 100 million tonnes, curbing exportable provides.
Brazilian agribusiness consultancy AgRural on Monday estimated the nation’s whole corn crop at 95.5 million tonnes.
(Extra reporting by Gus Trompiz in Paris, Naveen Thukral in Singapore and Mark Weinraub in Chicago; enhancing by David Goodman, Bernadette Baum and Richard Chang)
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