Investing.com - Soybean futures were up for a second day on Thursday, trading close to a seven-month high hit earlier in the week as market participants monitored weather conditions in key South American soy producers.
On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD14.2400 a bushel during European morning trade, adding 0.28%.
It earlier rose by as much as 0.55% to trade at a session high USD14.2788 a bushel. Prices rose to USD14.3375 a bushel on Tuesday, the highest since September 7.
Soybeans shrugged off a stronger U.S. dollar and broader market risk aversion, which was sparked by concerns over Spain’s fiscal health and diminished expectations for a third round of monetary easing in the U.S.,
Instead, soy traders focused on market fundamentals. Soybean prices jumped 16% in the first three months of 2012 amid sustained concerns over distressed crops in major South American soy growers and on hopes demand from top consumer China will remain robust in the near-term.
Concerns over soy crops in Brazil lingered after influential industry group Informa Economics cut its forecast for Brazil's 2011-12 soybean production.
The industry group now sees Brazil harvesting 66.5 million metric tons of soybeans, down 2.2% from the firm's previous forecast of 68.0 million tons.
Informa also lowered its outlook for Argentinean soybean output to 45 million tonnes from a previous estimate of 47.5 million.
The gloomy South American crop outlook fuelled speculation the USDA will further cut estimates of soybean output from Brazil and Argentina when it releases its updated global supply and demand outlook on March 30.
Last month, the USDA lowered its combined soybean production estimates for Brazil and Argentina and said that reduced South American output will boost U.S. exports by 22% to a record 42.2 million tons in the marketing year that begins in September.
Brazil and Argentina are major soy exporters and compete with the U.S. for business on the global market. Downbeat South American crop prospects could increase demand for U.S. supplies.
Meanwhile, prices continued to draw support from last week’s Prospective Plantings report from the U.S. Department of Agriculture.
The USDA said last Friday that it expects U.S. farmers to sow 73.90 million acres with soybeans this year, down 1.4% from 2011 and the lowest in five years.
Analysts had expected U.S. soybean plantings to total just over 75.0 million acres. The drop in acreage for soybeans comes as farmers favored early corn plantings.
The USDA also said soybean inventories on March 1 totaled 1.372 billion bushels, up 9.9% from the 1.249 billion a year earlier. The average analyst estimate was 1.371 billion bushels.
Consumption of the oilseed in the three months leading up to March totaled 998 million bushels, down 3% from a year earlier, the USDA said.
Elsewhere on the Chicago Mercantile Exchange, wheat for May delivery dipped 0.3% to trade at USD6.3725 a bushel, while corn for May delivery shed 0.2% to trade at USD6.5562 a bushel.
On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD14.2400 a bushel during European morning trade, adding 0.28%.
It earlier rose by as much as 0.55% to trade at a session high USD14.2788 a bushel. Prices rose to USD14.3375 a bushel on Tuesday, the highest since September 7.
Soybeans shrugged off a stronger U.S. dollar and broader market risk aversion, which was sparked by concerns over Spain’s fiscal health and diminished expectations for a third round of monetary easing in the U.S.,
Instead, soy traders focused on market fundamentals. Soybean prices jumped 16% in the first three months of 2012 amid sustained concerns over distressed crops in major South American soy growers and on hopes demand from top consumer China will remain robust in the near-term.
Concerns over soy crops in Brazil lingered after influential industry group Informa Economics cut its forecast for Brazil's 2011-12 soybean production.
The industry group now sees Brazil harvesting 66.5 million metric tons of soybeans, down 2.2% from the firm's previous forecast of 68.0 million tons.
Informa also lowered its outlook for Argentinean soybean output to 45 million tonnes from a previous estimate of 47.5 million.
The gloomy South American crop outlook fuelled speculation the USDA will further cut estimates of soybean output from Brazil and Argentina when it releases its updated global supply and demand outlook on March 30.
Last month, the USDA lowered its combined soybean production estimates for Brazil and Argentina and said that reduced South American output will boost U.S. exports by 22% to a record 42.2 million tons in the marketing year that begins in September.
Brazil and Argentina are major soy exporters and compete with the U.S. for business on the global market. Downbeat South American crop prospects could increase demand for U.S. supplies.
Meanwhile, prices continued to draw support from last week’s Prospective Plantings report from the U.S. Department of Agriculture.
The USDA said last Friday that it expects U.S. farmers to sow 73.90 million acres with soybeans this year, down 1.4% from 2011 and the lowest in five years.
Analysts had expected U.S. soybean plantings to total just over 75.0 million acres. The drop in acreage for soybeans comes as farmers favored early corn plantings.
The USDA also said soybean inventories on March 1 totaled 1.372 billion bushels, up 9.9% from the 1.249 billion a year earlier. The average analyst estimate was 1.371 billion bushels.
Consumption of the oilseed in the three months leading up to March totaled 998 million bushels, down 3% from a year earlier, the USDA said.
Elsewhere on the Chicago Mercantile Exchange, wheat for May delivery dipped 0.3% to trade at USD6.3725 a bushel, while corn for May delivery shed 0.2% to trade at USD6.5562 a bushel.