Bargain buying lends support to U.S. corn, soybean, wheat futures

Bargain buying lends support to U.S. corn, soybean, wheat futures

22 May    Finance News, PMN Business, REU

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CHICAGO — U.S. wheat, soybean and corn futures rose on Monday, with a round of bargain buying supporting commodities prices after a bearish global supply picture pushed prices sharply lower this month.

The benchmark Chicago Board of Trade contract dropped below $6 a bushel for the first time in more than two years during overnight trading.

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Corn and soybean futures notched the biggest gains on Monday after both posted four session losing streaks to close last week.

“Corn and soybean prices reached oversold territory during last week’s liquidation phase, so a bounce is not a surprise this morning,” StoneX chief commodities economist Arlan Suderman wrote in a client note.

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At 10:06 a.m. CDT (1506 GMT), Chicago Board of Trade July soft red winter wheat futures were up 7-3/4 cents at $6.12-3/4 a bushel. Prices bottomed out at $5.96-1/4 a bushel, the lowest on a continuous basis for the most-active contract since March 31, 2021, during overnight trading.

Last week, the deal for a safe shipping channel for Ukraine’s grain exports was extended for two more months, easing concerns over world supplies.

Concern about the deteriorating quality of the U.S. winter crop limited losses. The U.S. Agriculture Department will release its weekly ratings view of the wheat crop at 3 p.m. CDT (2000 GMT) on Monday.

Another consignment of about 30,000 tonnes of European Union origin wheat, believed to be from Poland, is expected to be shipped to the United States in June or July, European traders said on Monday. This followed two shipments earlier this year.

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CBOT July soybeans were up 18-3/4 cent at $12.07-3/4 a bushel and CBOT July corn was up 21 cents at $5.75-1/2 a bushel.

USDA also will provide an update of how much corn and soybeans U.S. farmers have seeded so far this year on Monday afternoon. (Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore; editing by Sharon Singleton and Grant McCool)

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