Investing.com - Soybean futures regained strength on Thursday, trading close a five-month high as investors readjusted positions ahead of the release of Friday’s key monthly U.S. government report on global soy supplies amid ongoing concerns over crop conditions in South America.
On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD13.3288 a bushel during European morning trade, edging up 0.41%.
It earlier rose by as much as 0.65% to trade at a session high USD13.3438 a bushel. Prices rose to USD13.3887 on Wednesday, the highest since September 23.
Soybean futures have rallied almost 10% since the beginning of February, as market sentiment has been dominated by concerns over distressed crops in major South American soy growers and on hopes demand from top consumer China will remain robust in the near-term.
Concerns over soy crops in Brazil lingered after the state agriculture agency of Rio Grande do Sul on Wednesday lowered its soy crop forecast for the current marketing season to 7.1 million tonnes, down from a previous estimate of 8 million.
Rio Grande is the third largest soybean growing states in Brazil, while Brazil is the world’s second largest soybean exporter.
Indications of strong Chinese demand further underpinned prices. China imports 60% of soybeans shipped around the world, with the bulk of its purchases coming from the U.S. and Brazil, the world's top exporters.
Downbeat crop prospects in the South American country could boost the Asian nation’s demand for U.S. supplies, which is the world’s largest shipper of the grain.
According to local officials, China's northeast province of Heilongjiang, the country's top corn and soy grower, aims to expand its corn acreage by paring back on land for soy crops in an effort to raise total grains output by 8% in 2012.
Heilongjiang, which contributes a third of the country's soy output, cut its soy acreage by 10% in 2011, reducing output by 7.5%, or 5.4 million tonnes, from a year earlier.
The lower soy acreage figure fuelled speculation China would import more supplies from the U.S. and decrease its reliance on domestic soy.
Last month, the USDA said that reduced South American production will boost U.S. exports by 22% to a record 42.2 million tons in the year that begins September.
Meanwhile, soy traders were looking forward to the U.S. Department of Agriculture’s World Agricultural Supply & Demand Estimates report for March due on Friday.
Some market analysts expect the agency to raise its estimates for U.S. soybean exports, given increased demand for U.S. supplies and a downward revision in the South American soy crop.
Agricultural commodities also received a lift from improved broader market sentiment as prospects for a successful Greek deal rose after a group of major banks and funds said they would take part in the swap.
The swap is vital for Greece to cut its debt and secure a bailout of EUR130 billion. Without the aid package, Greece could potentially default on its debt later this month.
Elsewhere on the Chicago Mercantile Exchange, wheat for May delivery rallied 1.04% to trade at USD6.4588 a bushel, while corn for May delivery added 0.5% to trade at USD6.4263 a bushel.
On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD13.3288 a bushel during European morning trade, edging up 0.41%.
It earlier rose by as much as 0.65% to trade at a session high USD13.3438 a bushel. Prices rose to USD13.3887 on Wednesday, the highest since September 23.
Soybean futures have rallied almost 10% since the beginning of February, as market sentiment has been dominated by concerns over distressed crops in major South American soy growers and on hopes demand from top consumer China will remain robust in the near-term.
Concerns over soy crops in Brazil lingered after the state agriculture agency of Rio Grande do Sul on Wednesday lowered its soy crop forecast for the current marketing season to 7.1 million tonnes, down from a previous estimate of 8 million.
Rio Grande is the third largest soybean growing states in Brazil, while Brazil is the world’s second largest soybean exporter.
Indications of strong Chinese demand further underpinned prices. China imports 60% of soybeans shipped around the world, with the bulk of its purchases coming from the U.S. and Brazil, the world's top exporters.
Downbeat crop prospects in the South American country could boost the Asian nation’s demand for U.S. supplies, which is the world’s largest shipper of the grain.
According to local officials, China's northeast province of Heilongjiang, the country's top corn and soy grower, aims to expand its corn acreage by paring back on land for soy crops in an effort to raise total grains output by 8% in 2012.
Heilongjiang, which contributes a third of the country's soy output, cut its soy acreage by 10% in 2011, reducing output by 7.5%, or 5.4 million tonnes, from a year earlier.
The lower soy acreage figure fuelled speculation China would import more supplies from the U.S. and decrease its reliance on domestic soy.
Last month, the USDA said that reduced South American production will boost U.S. exports by 22% to a record 42.2 million tons in the year that begins September.
Meanwhile, soy traders were looking forward to the U.S. Department of Agriculture’s World Agricultural Supply & Demand Estimates report for March due on Friday.
Some market analysts expect the agency to raise its estimates for U.S. soybean exports, given increased demand for U.S. supplies and a downward revision in the South American soy crop.
Agricultural commodities also received a lift from improved broader market sentiment as prospects for a successful Greek deal rose after a group of major banks and funds said they would take part in the swap.
The swap is vital for Greece to cut its debt and secure a bailout of EUR130 billion. Without the aid package, Greece could potentially default on its debt later this month.
Elsewhere on the Chicago Mercantile Exchange, wheat for May delivery rallied 1.04% to trade at USD6.4588 a bushel, while corn for May delivery added 0.5% to trade at USD6.4263 a bushel.