Soybeans Rise, Hover Near 1.5 Week Low On Easing LatAm Supply Woes
Chicago soybeans snapped a three-session losing streak on Thursday, but gains were limited as rains across South America eased supply worries.
Wheat and corn prices gained ground with additional support from broad-based gains in world markets on hopes for more economic stimulus.
Asian stocks rose to new record highs, tracking US markets as investors hoped for more economic stimulus from newly inaugurated US president Joe Biden to offset damage wreaked by the COVID-19 pandemic.
The Chicago Board of Trade (CBOT) most-active soybean contract added 0.9% to $13.81-3/4 a bushel, as of 1225 GMT.
The market dropped to its lowest since 8 January at $13.52 a bushel on Wednesday. Wheat rose 0.7% to $6.72-1/4 a bushel and corn gained 1.5% to $5.30 a bushel.
Soybeans could face increased volatility as markets look for direction before the South American harvest begins in force.
China's soybean imports from the United States rose by 52.8% in 2020 from a year earlier, customs data showed on Wednesday, though the stepped-up buying likely fell short of what was needed to fulfil last year's trade deal between the countries.
The world's top soybean buyer last year brought in 25.89 million tonnes of the oilseed from the United States, its second-largest supplier, up from 16.94 million tonnes in 2019.
Argentine farmers have dramatically increased sales from the upcoming 2020/21 corn harvest, due to concern the government may yet again try to limit international sales.
The agriculture ministry has caused uncertainty by going back and forth in recent weeks on policies seeking to ensure ample food supplies by limiting international shipments of corn.
Argentina is the world's No. 3 exporter of the grain. Wheat was supported by impending Russian export taxes, though expected rainfall across the United States limited gains.
Commodity funds were net buyers of CBOT soyoil futures contracts on Wednesday and net sellers of soybean, corn, soymeal and wheat futures contracts, traders said.