Soybeans rise to three-year high on Chinese buying
Chicago most-active soybean futures soared to their highest for three years and notched life-of-contract highs on Thursday amid a steady stream of Chinese purchases of U.S. soy, with an upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping adding support, analysts said.
Positioning ahead of Friday's U.S. Department of Agriculture supply and demand report helped drive soybean and corn prices higher.
Corn and wheat also gain as traders watch weather, war and crude prices
The most-traded soybean contract Sv1 on the Chicago Board of Trade was last 19-3/4 cents higher at $13.29-1/2 per bushel as of 10:30 a.m. CT (1530 GMT) after hitting $13.30-1/2 per bushel, its highest point since December 2023.
The most-traded corn contract Cv1 was 4-1/2 cents higher at $5.32-1/4 per bushel.
The USDA reported additional Chinese purchases of U.S. soybeans on Wednesday and Thursday. Analysts expect China to continue soybean purchases in the run-up to the September 24 meeting between Trump and Xi to build goodwill.
A spike in crude oil prices has also benefited soybeans, as the oilseed is frequently used as a feedstock for biofuel.
Oil prices jumped 4% on Thursday with benchmark Brent crude hitting $105 a barrel after the biggest spike in attacks on shipping since the Iran war began spurred trader concerns about supply disruptions.
Friday's USDA report is being closely watched as a gauge of the impact of adverse weather on U.S. corn and soybean yields as well as the effects of Black Sea disruption on global grain trade.
Analysts polled by Reuters, on average, predict the USDA will reduce its corn yield forecast.
"I think you'll see drastic drops in corn yields across fields. The poor soil is going to show its true colors this year," said Mark Schultz, co-founder and CEO of Northstar Commodity.
CBOT wheat Wv1 rose 8-1/4 cents to $7.37 per bushel. Tit-for-tat attacks between Ukraine and Russia have choked off grain exports from the region. A morning attack on Dnipro, Ukraine, that hit a Bunge facility underlined the rising conflict in the region.
Diplomatic efforts to end Russia's war with Ukraine encouraged profit-taking earlier in the session.
"Renewed Russian comments about restarting U.S.-mediated peace talks gave funds an excuse to trim risk, while tomorrow’s (USDA) report adds another reason not to chase prices before seeing the new numbers," CM Navigator analysts wrote.
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