U.S. soybean futures rebounded on Tuesday in a technical and bargain-buying bounce from the prior day's losses, although gains were limited by favourable crop prospects in South America, where Brazil is due to harvest a record crop early next year.
Wheat and corn were narrowly mixed as early buying support faded under pressure from ample global grain supplies.
Concerns about a slumping agriculture sector were overhanging grains markets after Cargill said it plans to lay off 5% of its staff amid slumping revenues, ADM warned of a challenging 2025 and Tyson announced another meat plant closure.
Chicago Board of Trade January soybeans SF25 were up 5-1/4 cents at $9.90-1/2 a bushel at 12:47 p.m. CST (1847 GMT), March corn CH25 was down 1/2 cent at $4.32 a bushel and CBOT March wheat WH2% was up a penny at $5.48-1/4 a bushel.
Soybeans remained locked in a narrow range as traders weighed a recent rise in U.S. export sales against heavy global supplies and concerns about the incoming Trump administration's hawkish approach to trade with top soy importer China.
"Yesterday's trading in soybeans tested the downside and prior lows, but was lightly rejected by the close. Today's upside attempt was also rejected," said Rich Nelson, chief strategist at brokerage Allendale.
"We're still in a narrow band of trading in soybeans, waiting on some further confirmation of tariffs and trade policy," he said.
Brazilian soybean growers are expected to reap an enormous crop in the 2024/25 season, while recent rains across Argentina's agricultural heartland have brought much-needed moisture to the soil as farmers are planting.
Meanwhile, U.S. wheat futures have hovered near contract lows as large global harvests and recent dollar strength dented U.S. export prospects.
Australia raised its national 2024/25 wheat harvest estimate on Tuesday, with good yields in the east and west forecast to compensate for losses in the south.
Source - https://www.xm.com
