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U.S. soybeans rebound ahead of USDA export sales data

Published 08/28/2014, 05:51 AM
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Investing.com - U.S. soybean futures regained strength on Thursday, as investors returned to the market to seek cheap valuations after prices fell to a four-year low earlier in the week.

On the Chicago Mercantile Exchange, U.S. soybeans for November delivery inched up 0.33%, or 3.38 cents, to trade at $10.2738 a bushel during U.S. morning hours.

A day earlier, prices of the oilseed shed 0.41%, or 4.2 cents, to end at $10.2360.

The November soy contract fell to $10.1960 a bushel on Tuesday, a level not seen since September 2010, as ongoing expectations for a record U.S. harvest weighed.

According to the U.S. Department of Agriculture, this fall's U.S. harvest will reach an all-time high of 3.82 billion bushels.

Meanwhile, U.S. corn for December delivery tacked on 0.27%, or 0.97 cents, to trade at $3.6538 a bushel. Corn prices ended Wednesday's session little changed at $3.6500.

Prices fell to a four-year low of $3.4800 a bushel on August 12 after the USDA estimated the corn harvest at 14.03 billion bushels, which would break last year's record of 13.93 billion.

The agency also said it expected average corn yields of 167.4 bushels per acre, above an all-time high of 164.7 in 2009.

Later in the day, the USDA will publish its weekly U.S. grain export sales report for the week ending August 22.

Analysts estimated new-crop U.S. soybean sales were 750,000 to 1.1 million tons, while new-crop corn sales were 450,000 to 850,000 tons.

Elsewhere on the CBOT, U.S. wheat for December delivery rallied 1.05%, or 5.88 cents, to trade at $5.6788 a bushel, the most since August 6.

Prices of the grain climbed 1.03%, or 5.6 cents, on Wednesday to settle at $5.6220 as lingering geopolitical tensions between Russia and Ukraine helped offset selling pressure from expectations of ample global supplies.

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

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