Soybeans rebound after falling on US-China trade disappointment
SOYB•Chicago soybean futures rose 12-3/4 cents to $13.01 a bushel after hitting a four-week low, as buyers emerged ahead of a U.S. Department of Agriculture stocks report and traders watched rain-delayed harvests.
1. Soybeans recover
The most-active Chicago Board of Trade soybean contract rose 12-3/4 cents to $13.01 a bushel on Tuesday, recovering after falling to $12.79-1/4 on Monday, its lowest since August 31. Traders had been disappointed by the lack of additional Chinese purchase commitments for U.S. soybeans following last week's U.S.-China summit.
2. Harvest and stocks data
Traders also watched wet conditions in parts of the Midwest and positioned ahead of the USDA's quarterly stocks report due Wednesday. Farmers had harvested 17% of the soybean crop and 18% of the corn crop as of Sunday, matching the five-year average pace but below analysts' expectations of 20% for both crops. The USDA report is expected to show corn stocks of 1.918 billion bushels at September 1, compared with 1.551 billion a year earlier.
3. Other grain prices
CBOT corn fell 3/4 of a cent to $5.22-1/4 a bushel, while wheat gained 3-1/2 cents to $6.92-1/4.
