Soybean Futures Rise on Planting Relief
Soybean futures rose to multiweek highs Tuesday as traders bet U.S. farmers would cap oilseed acreage this year.
U.S. farmers are already expected to plant record amounts of soybeans, but recent delays to corn planting concerned some traders they might switch even more of their land to the oilseed. A recent bout of good weather, which allowed farmers to roar ahead with corn seeding, allayed some of those concerns.
Soybean futures for July delivery rose 1.1% to $9.76 1/4 a bushel at the Chicago Board of Trade, the highest close since late March.
But recent indicators of soybean demand are mixed. The U.S. Department of Agriculture reported Tuesday a private export sale of soybeans to an unknown buyer, while trade group the National Oilseed Processors Association said Monday April's soybean crush fell below expectations.
After shedding around 10% of its value in recent months, some analysts said soybean futures nevertheless have room for gains.
Grain futures were under pressure on continued pessimism in the commodity sector, with crude-oil prices lower Tuesday. Corn futures in particular have wobbled in recent days as efficient fieldwork pushes traders to pull out of bets that weather delays would reduce this year's crop yield.
"Sellers have the confidence to keep the pressure on the market," said Doug Bergman, director of the agricultural trading desk at RCM Alternatives.
CBOT July corn futures closed unchanged at $3.67 3/4 a bushel while wheat rose 0.2% to $4.24 1/4.
Write to Benjamin Parkin at benjamin.parkin@wsj.com
(END) Dow Jones Newswires
May 16, 2017 16:01 ET (20:01 GMT)