2023-10-04 20:28:21
Soybean prices in Chicago rose slightly on Wednesday as a weaker U.S. dollar sent oilseeds up nearly 1% at one point before risk aversion pushed prices back toward their opening levels.
Wheat fell and corn was squeezed in between, in what one strategist called a seasonal “bottom formation” for U.S. agricultural markets as traders await new data on harvests and supplies.
The most active Chicago Board of Trade (CBOT) soybean futures closed up 1/4 of a cent to settle at $12.73 a bushel. November soybeans rose to $12.85 mid-session as the decline in the US dollar (DXY) strengthened the oilseed’s competitiveness in global markets.
But rising US interest rates may have reduced investors’ appetite for risk, as 30-year US Treasury yields US30YT=RR rose above 5% for the first time since August 2007.
“I think you’re seeing funds take some risk off the table, which means selling beans,” said Scott Harms, an agricultural risk specialist at Archer Financial Services in Chicago. “So I think the abandonment of positions on soybeans and soybean oil has a lot to do with it,” he added. December soybean oil futures fell nearly 2%.
CBOT’s December soft red winter wheat fell nearly 1.5% to end at $5.60, pushed down by profit-taking.
December corn lost 1 1/2 cents to $4.86 a bushel, consolidating near a three-week high but not far from the lows last seen in December 2020.
“Demand has been a real albatross for the market,” Mr. Harms said, adding that “we expect demand to improve as South American supplies decline heading into the months of winter”.
Traders will get a demand update in a U.S. Department of Agriculture (USDA) report on net export sales scheduled for Thursday at 7:30 a.m. CDT (1230 GMT). (Reporting by Zachary Goelman in New York; Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra; Editing by Marguerita Choy and Grant McCool)
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