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Soybeans Climb On Strong Demand, Set For Weekly Gain

Published on Oct 8 2021 11:58 AM in Supply Chain tagged: Wheat / Commodities / Soybeans / USDA

Soybeans Climb On Strong Demand, Set For Weekly Gain

Chicago soybean futures gained more ground on Friday and were on course to post their first weekly gain in six weeks, helped by strong demand for US supplies of the oilseed.

Corn prices rose for a second session, while wheat gained after closing lower on Thursday.

The most-active soybean contract on the Chicago Board Of Trade (CBOT) jumped 1.1% to $12.61-1/2 a bushel, their highest level in one week, by 0223 GMT. Soybeans are up 1.2% for the week.

Corn has lost 0.7% for the week, after firming 2.8% last week. Wheat is down 1.7% this week, after three weeks of losses.

The U.S. Department of Agriculture (USDA) said on Thursday export sales of soybeans totalled 1.042 million tonnes. The government also said that private exporters reported a sale of 261,264 tonnes of soybeans to Mexico.

Food Prices On The Increase

Global grain and oilseed importers are getting concerned as food prices hit a 10-year peak last month, driven by gains for cereals and vegetable oils.

Market eyeing the USDA's monthly World Agricultural Supply and Demand Estimates report on Tuesday.

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Analysts expect U.S. corn production at 14.973 billion bushels, down from its September estimate of 14.996 billion.

The average soybean production estimate was 4.415 billion bushels, up from USDA's September view of 4.374 billion.

Commodity funds were net buyers of CBOT corn, soybean and soyoil futures contracts on Thursday, traders said. Funds were seen as net sellers of CBOT wheat and soymeal futures.

News by Reuters, edited by ESM. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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