Soybeans climb, corn dips ahead of Friday WASDE
Soybean futures gained for a second straight day on signs of improved demand for inventories from the U.S., the world's second-biggest exporter of the oilseeds. Corn and wheat declined.
U.S. exporters sold 250,000 metric tons of soybeans to China for delivery in the current marketing year that started on Sept. 1, the U.S. Department of Agriculture said in a report on Thursday. In the week that ended on Oct. 31, overseas buyers bought 1.018 million tons of soybeans, the USDA said in a separate report. Analysts surveyed by The Wall Street Journal forecast sales from 500,000 to 1.175 million tons.
The USDA on Friday will release its first supply-and-demand report since September after last month's was canceled due to the partial government shutdown. In the report, the government may increase its forecast for soybean exports due to the strong demand, analysts said.
"The USDA, I think, has to raise its demand numbers on the report," said Doug Bergman, a broker at RCM Asset Management in Chicago. "We had a pretty good pop today in the November contract and that led prices higher."
Chicago Board of Trade soybean futures for November delivery on the CBOT gained 15 3/4 cents, or 1.3%, to $12.78 3/4 a bushel.
The USDA in Friday's reports is expected to increase its forecasts for corn and soybean production, yield and stockpiles while cutting its outlook for harvested acres, according to analysts surveyed by The Wall Street Journal. Wheat stockpiles are forecast to be lower than expected in September by analysts.
Corn futures for December delivery fell 3/4 cent, or 0.2%, to $4.20 1/4 a bushel, the lowest closing price for a front-month contract since Aug. 26, 2010.
Wheat futures for December delivery fell 1/4 cent, or 0.04%, to $6.53 a bushel in Chicago.
"We got the big report coming out tomorro so everybody is well-positioned," Mr. Bergman said. "Early in the day we had some covering but by the end of the day we were back to nearly unchanged."
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(END) Dow Jones Newswires
November 07, 2013 15:14 ET (20:14 GMT)
DJ Soybeans Gain on Improved Demand for U.S. Supplies -- Update->copyright