Soybeans Rise On Vegetable Oil Rally; Corn Consolidates
Chicago soybean futures gained for a fourth straight session on Wednesday supported by tightness in vegetable oil markets as traders anticipate U.S. planting data next week.
Corn was flat ahead of the U.S. Department of Agriculture's planting estimates as traders continued to assess mixed crop conditions in South America.
Wheat eased as favorable growing conditions in the United States hung over the market.
The most-active soybean futures on the Chicago Board Of Trade added 6-1/4 cents to $14.29-1/2 per bushel by 11:30 a.m. CDT (1630 GMT).
CBOT corn lost 3/4 cent to $5.50-1/2 per bushel, while CBOT wheat slid 8-3/4 cents to $6.26 per bushel.
Despite a lack of fresh daily sales of soybeans since January, the oilseed has found renewed support this week on strong edible oil demand, in turn linked to a tight supply of U.S. soybeans as well as oils and expectations of more U.S. biofuel demand under President Joe Biden.
"The demand for soy oil internationally is still there. The demand for meal internationally is still there," said Dan Hussey, senior market strategist at Zaner Group. "We’re running out, or getting near pipeline beans in the U.S."
The vegetable oil tensions have helped counter pressure from the arrival of Brazil's rain-delayed soybean harvest, and improving moisture levels for developing crops in Argentina.
Traders in the corn market weighed private forecasts of a big U.S. corn area ahead of the USDA's March 31 estimates.
"We’re really marking time ahead of next week’s report. We’ve got corn and soybean prices consolidating just below multiyear highs, and generally friendly fundamentals, but not enough to take them to the next level ahead of the report," said Arlan Suderman, chief commodities economist at StoneX.
Rains in the U.S. Plains have improved winter wheat crop ratings this month, according to USDA data, adding pressure to the market.