GRAINS-Soybeans firm, near 2-month high on China demand hopes

Reuters
6 hours ago
GRAINS-Soybeans firm, near 2-month high on China demand hopes

SINGAPORE, Aug 25 (Reuters) - Chicago soybean futures rose for a fourth consecutive session on Monday, trading near a two-month high hit in the previous session, as hopes of China's return to the market underpinned prices.

Corn also firmed, although gains were limited by expectations of a record U.S. harvest, while wheat rose after closing lower in the previous session.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose 0.1% to $10.59-1/2 a bushel, as of 0008 GMT, near its highest since June 23 hit in the prior session.

* Corn Cv1 added 0.6% to $4.13-3/4 a bushel and wheat Wv1 gained 0.3% to $5.29 a bushel.

* Market talk that China was inquiring about U.S. soybeans supported prices late last week, fuelling hopes that the world's No. 1 soybean buyer could end months of ignoring U.S. supplies amid a trade war with Washington. Traders, however, said there were no clear signs of any purchases.

* Expectations of stronger demand for U.S. soybeans helped offset a crop tour's forecast of higher U.S. production.

* U.S. farmers will harvest a record corn crop in 2025 and a bumper soybean crop after ideal weather across much of the Midwest this summer, crop consultancy Pro Farmer said on Friday.

* However, dry conditions in parts of the eastern Midwest and pockets of disease pressure in Iowa may limit soybean yield potential, Pro Farmer said after its annual four-day tour across seven top-producing states this week.

* Pro Farmer projected 2025 U.S. corn production at a record 16.204 billion bushels, with an average yield of 182.7 bushels per acre, and soybean production at 4.246 billion bushels, with an average yield of 53.0 bpa.

* The 2025/2026 soybean crop in the world's largest soy producer, Brazil, is estimated at 176.5 million metric tons, up 3% from the previous cycle, consultancy AgResource said on Friday.

* Large speculators trimmed their net short position in Chicago Board of Trade corn futures in the week to Aug. 19, regulatory data released on Friday showed.

* The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and trimmed their net short position in soybeans.

MARKET NEWS

* Stocks climbed and U.S. Treasury yields and the dollar fell on Friday after Federal Reserve Chair Jerome Powell pointed to a possible rate cut at the central bank's September meeting. MKTS/GLOB

DATA/EVENTS (GMT)

0500 Japan Leading Indicator Revised June

0800 Germany Ifo Business Climate New August

0800 Germany Ifo Curr Conditions, Expectations New August

1400 US New Home Sales-Units July

(Reporting by Naveen Thukral; Editing by Himani Sarkar)

((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))

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