You are here

GRAINS-Soybeans set for biggest one-week gain in 6 months on supply worries

SYDNEY, March 27 (Reuters) - U.S. soybean futures rose on Friday as concerns that the coronavirus pandemic will lead to global supply shortages put the oilseed on track for its biggest weekly gain in nearly six months.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade up 2.5% this week, set for its biggest weekly gain since Oct. 4, 2019.

* Soybeans rose 0.5% to $8.84-1/2 a bushel by 0156 GMT.

* The most active corn futures gained nearly 1% for the week, after falling 6% last week.

* The most active wheat futures rose at least 5% for the week, after rising about 5% in the previous week.

* Wheat has drawn support panic buying of food staples by consumers spurred flour demand as well as speculative buying on futures markets.

* Russia's agriculture ministry said on Thursday it expected domestic grain prices to stabilise in the near future and did not foresee any drop in the country's supply of flour.

The U.S. Department of Agriculture reported export sales of U.S. old-crop corn in the week to March 19 at 1.8 million tonnes, a marketing year high.

* China's soybean futures jumped more than 3% to 4,739 yuan a tonne, its highest since May 2018, as imported cargoes get delayed.

* Chinese soybean processors fear the spread of coronavirus in major exporters could lead to further supply shortages, with some plants in the world's biggest buyer already having to wind back operations, industry sources and traders said.

* Top producers Brazil and Argentina have warned of possible delays in getting beans to ports because of transport and other restrictions to control the virus. The moves come as delayed shipments from Brazil due to rains in late February have slashed Chinese inventories to record lows.

MARKET NEWS

* The dollar is on track for its biggest weekly fall in more than a decade on Friday as a series of stimulus steps around the world, including a $2.2 trillion U.S. package, calmed panic of a global recession.

* Oil prices rose on Friday after world leaders promised a massive injection of funds to limit the economic fallout from the pandemic, despite fears the outbreak will destroy demand for oil.

* The Dow Jones index wrapped up its strongest three days in nine decades on Thursday as record weekly U.S. jobless claims came in below investors' worst fears and focus stayed on an unprecedented stimulus package.

(Reporting by Colin Packham; Editing by Amy Caren Daniel)

© Copyright Thomson Reuters 2020. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about

Tip of the Day

Farmer-Built Tough Trough

one tough trough My new troughs are made of 36-inch drain pipe cut in half. The one in the barn is installed with 6-inch wood screws, flat washers, and... read more

Talk in Marketing

Most Recent Poll

What type of podcast content do you want from Successful Farming?