Soybeans turn higher after dropping to five-month low
* Soybean market eyes Latam crops, swine fever in China
* Wheat hovers near one-month low
* Corn near unchanged as global supply weighs
(Adds closing prices)
By Tom Polansek
CHICAGO, April 18 (Reuters) - U.S. soybean futures turned
higher on Thursday after dropping to a five-month low on
concerns about weak export demand and large harvests in South
Corn futures ended near unchanged, while wheat futures
touched a one-month low on a broadly favorable harvest outlook
in the Northern Hemisphere.
Positioning ahead of a three-day weekend fueled the
turnaround in soybeans, traders said, with U.S. grain markets
closed for Good Friday.
Yet large global supplies continued to hang over the
markets, a day after Argentina projected its soy harvest would
climb from last year's drought-reduced crop.
In the United States, soybean inventories have swelled as
the U.S.-China trade has hurt shipments of American soy to
Chinese buyers. China instead made purchases from Brazil, which
is expected to harvest a bigger-than-expected crop and remain
stiff competition for global export sales.
"The fundamentals are not good for soybeans and that means
that any little rallies that come along should be sold," said
Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in
Most actively traded May soybean futures on the Chicago
Board of Trade rose 1-1/2 cents, or 0.2 percent, to
$8.80-1/2 a bushel. The contract earlier touched its
lowest price since Nov. 1.
The most active CBOT July corn contract rose 1/4-cent
to $3.67-1/4 a bushel. CBOT July wheat slid 2 cents, or
0.3 percent, to $4.48-1/4 a bushel.
Traders, in a weekly U.S. Department of Agriculture report
on Monday, will assess farmers' progress planting corn and soy
and condition ratings for wheat crops.
The USDA on Thursday reported U.S. wheat export sales in the
week ended April 11 that were in line with analysts'
expectations, corn sales that topped estimates and soy sales
that were toward the low end of estimates.
"Exports are nothing to get excited about," said Karl
Setzer, operations manager for Citizens LLC, a U.S. grain
The trade war between Washington and Beijing since last year
has disrupted flows of U.S. soybeans toward China, the world's
biggest importer of the oilseed. However, even in the event of a
trade agreement, Chinese demand for U.S. soy may be curbed by
the African swine fever hog disease, which has caused severe
losses to pig herds in China.
"The news suggests the market is both gaining supply from
bigger South American crops and losing demand as China's pigs
succumb to African swine fever," said Tobin Gorey, director of
agricultural strategy at Commonwealth Bank of Australia.
(Reporting by Tom Polansek in Chicago; additional reporting by
Gus Trompiz in Paris and Colin Packham in Sydney; editing by Jan
Harvey and Chizu Nomiyama)
First Published: 2019-04-18 04:07:22
Updated 2019-04-18 23:00:18
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