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Soybeans, Corn, Wheat End Firmer On Bargain Buying

Published on Sep 3 2021 9:29 AM in Supply Chain tagged: Trending Posts / China / soybean

Soybeans, Corn, Wheat End Firmer On Bargain Buying

U.S. soybean futures firmed on Thursday on bargain buying after a six-session slide and better-than-expected weekly export sales data, analysts said.

Corn and wheat futures also edged higher, consolidating after recent declines.

Chicago Board of Trade November soybeans settled up 5-1/2 cents at $12.83-1/4 per bushel, bouncing a day after hitting a two-month low. CBOT December corn ended up 2-3/4 cents at $5.25-1/2 a bushel and December wheat finished up 2-3/4 cents at $7.17 a bushel.

All three markets stabilised after falling this week on fears that damage at the U.S. Gulf from Hurricane Ida would stall grain exports as the U.S. harvest draws near.

Damages To Second Facility 

Grain shippers reported more damage from Ida to their terminals on Wednesday as Cargill Inc confirmed damage to a second facility, while power outages across southern Louisiana kept all others shuttered.

"The market continues to explore how to work around stunted U.S. export capacity caused by Hurricane Ida," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

But reminders of export demand lent support. The U.S. Department of Agriculture reported export sales of U.S. soybeans in the week to Aug. 26 at more than 2 million tonnes, topping a range of trade expectations.

Through its daily reporting system, the USDA confirmed private sales of 126,000 tonnes of U.S. soybeans to China.

Global Competitiveness 

A softer dollar underpinned values, making U.S. grains more competitive globally. The dollar index declined following data on the U.S. labor market.

Attention is turning to the USDA's Sept. 10 monthly supply and demand estimates. The report is drawing added interest after the USDA said it would review corn and soybean acreage figures for the publication, a month earlier than usual.

After the CBOT close, commodity brokerage StoneX raised its estimate of the average U.S. 2021 corn yield to 177.5 bushels per acre (bpa), from 176.9 in its previous monthly report. The firm raised its forecast of the U.S. 2021 soybean yield to 50.8 bpa, from its 3 August figure of 50.0.

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