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U.S. soybean futures edge higher amid Brazil supply disruption

Published 02/26/2015, 06:13 AM
U.S. soybeans trade near 6-week high as Brazil protests continue
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Investing.com - U.S. soybean futures edged higher on Thursday to trade just below a six-week peak hit earlier in the week as concerns over a disruption to supplies from Brazil boosted prices.

On the Chicago Mercantile Exchange, US soybeans for May delivery ticked up 1.52 cents, or 0.15%, to trade at $10.1213 a bushel during U.S. morning hours.

A day earlier, soybean prices lost 8.0 cents, or 0.79%, to settle at $10.1060, as investors cashed out of the market to lock in gains from a rally which took prices to a six-week high of $10.3200 on Tuesday.

A strike by Brazilian truck drivers protesting high fuel prices continued for the ninth day on Thursday, threatening to hold up grains exports at the nation's second-largest grain hub in Paranagua.

Brazil is a major soybean exporter and competes with the U.S. for business on the global market. A disruption to supplies there could mean increased demand for U.S. supplies.

Meanwhile, US wheat for May delivery dipped 0.27 cents, or 0.06%, to trade at $4.9713 a bushel as ample global supplies and indications of reduced demand for U.S. wheat continued to weigh.

On Wednesday, the May wheat contract fell to $4.9500 a bushel, the lowest level since February 3, before ending at $4.9720, down 6.4 cents, or 1.29%.

Elsewhere on the Chicago Board of Trade, US corn for May delivery inched up 1.48 cents, or 0.38%, to trade at $3.8588 a bushel.

US corn for May delivery shed 1.6 cents, or 0.45%, on Wednesday to close at $3.8360, after touching a low of $3.7940, a level not seen since February 3, as losses in wheat weighed.

Wheat and corn prices are linked because both can be used as animal feed.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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