Soybeans rise on tech buying
U.S. soybean futures rose Monday, boosted by technical buying and concerns that recent price declines were overdone.
Chicago Board of Trade March soybean futures settled up 21 1/4 cents or 1.6% at $13.88 1/2 a bushel.
Soybean futures rose on technical buying. Both Friday and Monday, March soybeans bounced after falling near their intraday low of the last several weeks. The recoveries inspired confidence that futures won't fall below that level, leading traders to buy soybeans.
The Nov. 16 intraday low of $13.56 a bushel for March futures has emerged as a technical support level, traders said.
Excessive rain focused on certain areas of Brazil and Argentina also pushed futures higher, said Terry Reilly, senior commodity analyst for Futures International, a Chicago brokerage.
Soybeans also benefited from strong recent demand for exports of soybean meal, although exports of soybeans themselves have been subject to cancellations of orders from China.
Soybean supplies remain tight overall, also underpinning prices.
"Historically, these are still very tight numbers and it basically kind of begs the question... are we going to produce enough?" said Bill Nelson, analyst with advisory firm Doane Advisory Services in St. Louis.
Corn futures rose on hopes that steep recent price declines would spark an uptick in export demand. Those hopes were fueled by an export sale announced by the government. The U.S. Department of Agriculture on Monday said private exporters reported selling 102,200 metric tons of corn for delivery to unknown destinations during the current marketing year.
Export demand for U.S. corn has been weak for months as foreign buyers were turning to cheaper supplies from other large exporters, like Brazil. But U.S. prices have become more competitive as they have fallen in the last month.
March corn futures rose 5 1/4 cents or 0.8% to $6.85 1/2 a bushel.
Wheat futures followed corn higher. Wheat is also underpinned by hopes for stronger export demand after steep recent price declines, and by concerns about parched soil threatening winter wheat crops in the southern Plains.
CBOT March wheat rose 4 cents or 0.5% to $7.51 1/4 a bushel. KCBT March wheat rose 3 cents or 0.4% to $8.07 1/2 a bushel. MGEX March wheat rose 5 1/2 cents or 0.7% to $8.46 1/2 a bushel.
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(END) Dow Jones Newswires
January 07, 2013 15:57 ET (20:57 GMT)
DJ UPDATE: U.S. Soybeans Rise; Technical Buying After Recent Fall->copyright
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