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Soy hits 7-month top on forecast for lower US planting

Soy hits 7-month top on forecast for lower US planting

Chicago soybean futures rose for a third session on Monday, climbing to their highest since mid-August, underpinned by a US government report forecasting lower planting for 2016.

Wheat rose to its highest in almost three weeks, while corn slid for a third session out of four.

Chicago Board of Trade most-active soybeans gained 0.2 percent to $9.19-3/4 a bushel by 0312 GMT, near its session-high of $9.22-1/4 a bushel, strongest since Aug. 17. Wheat rose as much as 0.7 percent to $4.79 a bushel, highest since March 15, and corn fell 0.3 percent to $3.53 a bushel.

Last week, the US Department of Agriculture estimated that farmers in the country planned to seed 82.236 million acres of soybeans this year, the third-highest ever but below 82.650 million a year ago and an average trade forecast of 83.057 million.

The agency reported that farmers were planning to boost corn seedings by 6.4 percent to 93.601 million acres (37.88 million hectares), the third-highest level since 1944.

“Friday’s positions report indicated that investors had added to their long beans positions. And, chances are, they have probably continued to do so given the lower-than-expected US planting estimates,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia in Sydney.

“Even so, given the numbers expected to come out of South American harvest this season, the US will still have more soybeans than the market needs.”

Large speculators trimmed their net short position in CBOT corn in the week to March. 29, regulatory data on Friday showed.

The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and raised their net long position in soybeans.

Funds bought an estimated net 8,000 Chicago Board of Trade soybean contracts on Friday, trade sources said.

In an early start to Brazil’s grain export season, soybeans have overtaken corn at the country’s ports in March and are expected to dominate bulk loading for the coming several months, trade data showed on Friday.

In wheat, adverse dry weather conditions in parts of US Plains are stressing the hard red winter wheat crop, supporting prices. Wheat seedings for 2016 were forecast by the USDA at a smaller-than-expected 49.559 million acres.

Still, global grain supplies should remain at record levels in the upcoming 2016/17 season which begins in July, the International Grains Council said on Friday.

(Source – http://www.brecorder.com/markets/commodities/asia/288589-soy-hits-7-month-top-on-forecast-for-lower-us-planting;-wheat-firms.html)

Soy hits 7-month top on forecast for lower US planting Reviewed by on . Chicago soybean futures rose for a third session on Monday, climbing to their highest since mid-August, underpinned by a US government report forecasting lower Chicago soybean futures rose for a third session on Monday, climbing to their highest since mid-August, underpinned by a US government report forecasting lower Rating: 0
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