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Grain futures mixed - Soybeans climb to 1-week high on Brazil delays

Published 03/21/2013, 07:04 AM
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Investing.com - U.S. grain futures were mixed during early U.S. morning hours on Thursday, with soybean prices climbing to a one-week high amid concerns over a disruption to supplies from Brazil.

On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD14.3100 a bushel, up 0.8% on the day.

The May contract rose by as much as 0.9% earlier in the session to hit a daily high of USD14.3262 a bushel, the strongest level since March 15.

Soybean prices were higher for a second day as shipping delays out of major South American producer Brazil fuelled speculation global importers will switch to U.S. supplies.

Prices have been on a downward trend in recent weeks as market players feared expectations for a bumper crop in Brazil and Argentina could result in lower demand for U.S. supplies.

The May contract fell to a three-month low of USD14.0312 a bushel on Tuesday, amid growing concerns over diminishing demand for U.S. supplies.

Brazil and Argentina are major soy exporters and compete with the U.S. for business on the global market. Large South American crop prospects could weigh on demand for U.S. supplies.

Later in the day, the U.S. Department of Agriculture will release its weekly grains export sales report.

Meanwhile, corn futures for May delivery traded at USD7.2988 a bushel, down 0.4% on the day. The May contract traded in a tight range between USD7.2938 a bushel, the daily low and a session high of USD7.3288 a bushel.

Corn traders were hesitant a recent rally that took prices to a six-week high of USD7.3290 a bushel on Wednesday.

Corn futures have been on an upward trend in recent sessions after the U.S. Department of Agriculture said last week that U.S. stockpiles before the next harvest will total 632 million bushels, the lowest level in 17 years.

The May contract has rallied nearly 7% since falling close to a three-month low of USD6.8212 a bushel on March 7.

Elsewhere, wheat for May delivery traded at USD7.3138 a bushel, down 0.7% on the day. The May contract fell by as much as 0.75% earlier in the session to hit a daily low of USD7.3112 a bushel.

Wheat prices rallied to a four-week high of USD7.3662 a bushel on Wednesday amid indications of increasing demand for U.S. supplies from global importers.

Wheat prices have been well-supported in recent sessions as traders bet that demand for U.S. wheat will increase after prices fell to an eight-month low of USD6.8125 a bushel on March 6.

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

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