Futures for front-month soybean hit their highest level in more than seven days on Wednesday, backed by strengthening US cash markets as inventories of old-crop soybeans declined with the autumn yield about two months away, traders suggested.
Corn futures dropped to a new four-year low.
August-delivery soybeans ascended 14 cents to trade at $11.98 per bushel, after touching $12.04-3/4 earlier at the Chicago Board of Trade by 1625 GMT. The most active November contract soared 12-1/2 cents to exchange at $10.70-1/4, reclaiming losses after hitting a contract low at $10.55, Reuters reported.
August contracts soared against back months over spreads as local crushers and shippers moved to compensate for the needs over the next couple of weeks, ahead of a yield of a probable record-large US crop, which is expected to begin in September.
“The exporter has got boats to load, and you’ve got thefarmer not selling anything. So pipeline is depleting. You aregetting pushes from pretty much all the processors,” Mike Hall of brokerage MLH Futures in Illinois is quoted by Reuters as saying.
Prices were further backed by concerns of dry weather probably restricting US soybeans harvest as the crop approaches its core pod-setting phase.
“The most important phase is right in front of us during the pollination period. While the weather forecast is good, the market is just playing it cautious,” Louise Gartner of New Richmond, Ohio-based Spectrum Commodities told Bloomberg.
US corn futures dropped on anticipation of a record harvest, considering positive weather conditions as the crop pollinates this month.
CBOT September corn plunged 3/4 cent to trade at $3.59-1/2 per bushel after dropping to $3.57-1/2, a low for such a contract and the lowest price for immediate-delivery corn since July 2010.
According to Bloomberg, wheat futures for settlement in December soared 0.7% to $5.2825 per bushel, approaching the first rise since July 17.
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