Soybeans stay firm on tight near-term supply; corn, wheat also higher

Corn higher as exports, planting weighed

  

PARIS/CANBERRA- Chicago soybean futures rose for a second session on Tuesday as the slow arrival of a rain-delayed Brazilian harvest and a lower than expected forecast of U.S. planting kept the focus on tight short-term supplies of the oilseed.

Corn was steady, with gains focused in old-crop contracts as investors adjusted positions after last week's U.S. Department of Agriculture (USDA) planting report that showed smaller than anticipated projections of U.S. corn and soybean acreage. 

Wheat ticked higher.

The most-active soybean futures on the Chicago Board Of Trade Sc1 were up 0.8% at $14.24-1/2 a bushel by 1144 GMT.

"The prompt market remains very tight," Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia, said of soybeans.

Brazilian farmers had harvested 78% of the area planted with the 2020/2021 soybean crop as of last Thursday, compared with 83% at the same point last year, consultancy AgRural said on Monday.

The soybean harvest pace has held up planting of Brazil's main annual corn crop, at a time when the corn market is similarly dependent on bumper Brazilian supply to replenish global inventories.

"This means that the (Brazilian corn) crops will be reliant even more than usual on favourable weather conditions with sufficient rainfall if their yield potential is to be achieved," Commerzbank said in a note.

While watching to see if U.S. farmers add more acres than estimated by the USDA, investors were also assessing early field work. The USDA on Monday estimated that U.S. corn planting was 2% complete, slightly below average expectations.

CBOT corn added 1.2% to $5.59-3/4 a bushel, while CBOT wheat was up 0.3% at $6.20 a bushel, consolidating above last week's three-month low.

The USDA rated 53% of the U.S. winter wheat crop good-to-excellent, in line with market expectations.

Wheat traders were awaiting the outcome of a tender by top importer Egypt, one of several tenders announced since last week.

(Reporting by Gus Trompiz in Paris and Colin Packham in Canberra; Editing by Amy Caren Daniel and Steve Orlofsky) ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))

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