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U.S. soybean futures rise to 1-month high before USDA report

Published 12/10/2014, 06:18 AM
U.S. soybeans hit 1-month high ahead of USDA monthly report
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Investing.com - U.S. soybean futures rallied to a one-month high on Wednesday, as investors looked ahead to the U.S. Department of Agriculture’s closely-watched monthly crop supply and demand report due later in the session.

Market analysts expect the agency to lower its forecast of 2014-15 soybeans ending stocks, while raising its estimates of corn and wheat ending stocks.

On the Chicago Mercantile Exchange, US soybeans for January delivery hit a daily peak of $10.6013 a bushel, the most since November 13, before trading at $10.5563 during U.S. morning hours, up 6.22 cents, or 0.59%.

A day earlier, soybeans picked up 5.4 cents, or 0.53%, to settle at $10.4920 a bushel.

Market analysts expected the USDA to cut its soybean inventories estimate by 5% from a month earlier to 427 million bushels.

Prices of the oilseed have been well-supported in recent sessions as surging demand for soybean products, such as soymeal, boosted prices.

Meanwhile, US corn for March delivery traded at $3.9663 a bushel, up 2.02 cents, or 0.51%. Corn futures tacked on 5.0 cents, or 1.28%, on Tuesday to close at $3.9520 a bushel.

The USDA is expected to raise its corn ending stocks forecast to 2.027 billion bushels from 2.008 billion in November.

Elsewhere on the Chicago Board of Trade, US wheat for March delivery declined 4.47 cents, or 0.76%, to trade at $5.8113 a bushel, after hitting a daily low of $5.8000, the weakest level since December 4.

A day earlier, wheat prices lost 12.2 cents, or 2.05%, to end at $5.8560 amid receding speculation Russia will limit its exports of the grain.

Russia, the world's third-largest wheat exporter, has shipped approximately 14 million tons of wheat so far in the 2014-15 marketing season, which started on July 1.

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

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