SINGAPORE, Jan 8 (Reuters) – Chicago soybeans rose for the first time in three sessions on Monday, with bargain-buying underpinning prices, although ample old-crop supplies and improved weather in top exporter Brazil limited the upside potential of the market.
Corn firmed after last week’s losses, while wheat fell 0.8%.
“The market is under supply pressure, we have plenty of beans around,” said one Singapore-based trader. “Both Brazil and U.S. have a lot to sell.”
Corn Cv1 added 0.2% to $4.61-3/4 a bushel and wheat Wv1 lost 0.8% to $6.11 a bushel.
Soybean futures are facing headwinds as rains have reduced concerns about crop losses in Brazil, the world’s biggest exporter of the oilseed.
U.S. exporters are likely to face stiff competition from Brazil in the soybean market this year.
Brazilian soybean exports will reach at least 1.3 million metric tons in January, a sharp increase from the 940,000 tons exported in the same month last year, according to projections released on Friday by Anec, a grain exporters group.
The U.S. Department of Agriculture (USDA) reported on Friday export sales of U.S. 2023/24 soybeans in the week ended Dec. 28 were 201,600 metric tons, below analysts’ expectations for 500,000 to 1,300,000 tons. Weekly U.S. corn and wheat sales also missed expectations.
This week, the USDA is slated to issue a quarterly U.S. grain stocks report and monthly data on global supply/demand.
In news on easing concerns over global food price inflation, the United Nations food agency’s world price index ended last year about 10% below its 2022, with values in December also down from the previous month.
The Food and Agriculture Organization’s (FAO) price index, which tracks the most globally traded food commodities, averaged 118.5 points in December, down 1.5% from November and 10.1% below December 2022 levels.
Large speculators increased their net short position in CBOT corn futures in the week to Jan. 2, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and increased their net short position in soybeans.