Investing.com - U.S. grain futures were mostly higher during European morning trade on Thursday, with soybean prices rebounding from the previous session’s two-month low despite concerns over a slowdown in Chinese demand and data showing more gloom about the global economy.
Elsewhere, wheat and corn futures were higher on concerns that hot and dry weather conditions in the U.S. Midwest may damage crop conditions.
Agricultural commodities shrugged off broader market risk aversion and a stronger U.S. dollar, as concerns over the effects of the deepening debt crisis in the euro zone kept safe haven demand for the greenback well supported.
Instead, grain traders returned to the market to seek cheap valuations following the previous day’s sell-off.
On the Chicago Mercantile Exchange, soybeans futures for July delivery traded at USD13.7300 a bushel, gaining 0.73%. It earlier rose by as much as 1.15% to trade at a session high of USD13.8138 a bushel. Prices touched USD13.5112 a bushel on Wednesday, the lowest since March 29.
Soybean futures lost nearly 1.5% on Wednesday, as weather forecasts improved for U.S. crops and traders worried about signs of slowing Chinese demand.
Traders in China said some Chinese buyers canceled import cargoes for previous soybean orders, as margins have turned negative for Chinese soybean processors. The size of the cancellations was not clear, but market participants are already that soybean demand could weaken in China, the world's largest importer of the oilseeds.
Soy prices are down nearly 10% since touching a four-year high of USD15.1237 a bushel on May 2, as hedge funds and large institutional investors unwound long positions to secure gains from an impressive 19% rally in the first five months of the year.
Market analysts expect an ever deeper drop heading into the summer, as the soy harvest in South America nears completion and higher prices eventually reduce the amount of Chinese purchases.
Meanwhile, wheat for July delivery traded at USD6.7075 a bushel during European morning trade, adding 0.7%. It earlier rose by as much as 1% to trade at a daily high of USD6.7363 a bushel.
Prices touched a three-day low of USD6.6325 a bushel on Wednesday, after climbing to as high as USD7.2138 a bushel on May 21, the highest since September 13, 2011.
Wheat traders continued to monitor weather conditions in the Black Sea region and across wheat-growing areas in the U.S. Great Plains.
Wheat prices soared nearly 14% last week, their biggest weekly gain in 16 years, on the back of concerns over drought-like conditions in Russia.
But Russian-based industry group SovEcon said it was too early “to panic” over Russian grains.
Elsewhere on the Chicago Board of Trade, corn futures for July delivery traded at USD6.0513 a bushel, edging up 0.15%. The July contract traded in a tight range between USD6.0788 a bushel, the daily high and a session low of USD6.0413 a bushel.
Corn futures have been holding above the key USD6.00-level, amid speculation lower prices would encourage China to boost purchases of U.S. corn. China’s state-owned grain-stockpiling agency, Sinograin, said last month that it was ready boost purchases to replenish depleted reserves if the prices are attractive.
China is expected to raise its 2012-13 corn imports to 6 million tonnes, up from the 2011-12 estimates of 5.5 million tonnes.
The U.S. produced 38% of the world's corn last year, making it the both world's largest corn producing nation and the largest exporter of the grain, while China is the world’s largest consumer of the grain.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
Elsewhere, wheat and corn futures were higher on concerns that hot and dry weather conditions in the U.S. Midwest may damage crop conditions.
Agricultural commodities shrugged off broader market risk aversion and a stronger U.S. dollar, as concerns over the effects of the deepening debt crisis in the euro zone kept safe haven demand for the greenback well supported.
Instead, grain traders returned to the market to seek cheap valuations following the previous day’s sell-off.
On the Chicago Mercantile Exchange, soybeans futures for July delivery traded at USD13.7300 a bushel, gaining 0.73%. It earlier rose by as much as 1.15% to trade at a session high of USD13.8138 a bushel. Prices touched USD13.5112 a bushel on Wednesday, the lowest since March 29.
Soybean futures lost nearly 1.5% on Wednesday, as weather forecasts improved for U.S. crops and traders worried about signs of slowing Chinese demand.
Traders in China said some Chinese buyers canceled import cargoes for previous soybean orders, as margins have turned negative for Chinese soybean processors. The size of the cancellations was not clear, but market participants are already that soybean demand could weaken in China, the world's largest importer of the oilseeds.
Soy prices are down nearly 10% since touching a four-year high of USD15.1237 a bushel on May 2, as hedge funds and large institutional investors unwound long positions to secure gains from an impressive 19% rally in the first five months of the year.
Market analysts expect an ever deeper drop heading into the summer, as the soy harvest in South America nears completion and higher prices eventually reduce the amount of Chinese purchases.
Meanwhile, wheat for July delivery traded at USD6.7075 a bushel during European morning trade, adding 0.7%. It earlier rose by as much as 1% to trade at a daily high of USD6.7363 a bushel.
Prices touched a three-day low of USD6.6325 a bushel on Wednesday, after climbing to as high as USD7.2138 a bushel on May 21, the highest since September 13, 2011.
Wheat traders continued to monitor weather conditions in the Black Sea region and across wheat-growing areas in the U.S. Great Plains.
Wheat prices soared nearly 14% last week, their biggest weekly gain in 16 years, on the back of concerns over drought-like conditions in Russia.
But Russian-based industry group SovEcon said it was too early “to panic” over Russian grains.
Elsewhere on the Chicago Board of Trade, corn futures for July delivery traded at USD6.0513 a bushel, edging up 0.15%. The July contract traded in a tight range between USD6.0788 a bushel, the daily high and a session low of USD6.0413 a bushel.
Corn futures have been holding above the key USD6.00-level, amid speculation lower prices would encourage China to boost purchases of U.S. corn. China’s state-owned grain-stockpiling agency, Sinograin, said last month that it was ready boost purchases to replenish depleted reserves if the prices are attractive.
China is expected to raise its 2012-13 corn imports to 6 million tonnes, up from the 2011-12 estimates of 5.5 million tonnes.
The U.S. produced 38% of the world's corn last year, making it the both world's largest corn producing nation and the largest exporter of the grain, while China is the world’s largest consumer of the grain.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.