Chicago soybeans rose for a second session on Tuesday to recover from a three-year low as a reduced forecast of Brazil’s ongoing harvest lent some support, though ample world supplies kept a lid on prices.
Corn was up slightly, paring gains after touching its highest in almost two weeks to also move away from a three-year low.
Wheat was also marginally higher.
Grains lacked impetus from wider financial markets as investors looked ahead to inflation data this week.
“There is some support and buying at these levels,” one Singapore-based grains trader said. “U.S. has a lot to sell and there is stiff competition from South America for soybeans and corn, so we don’t see a big upside in prices.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 1.0% to $11.56-1/4 a bushel by 1250 GMT. On Monday, the benchmark struck its lowest since November 2020 at $11.33-1/2.
CBOT corn rose 0.2 to $4.22-1/4 a bushel after reaching its highest since Feb. 15 at $4.24.
CBOT wheat Wv1 ticked up 0.1% to $5.75-1/2 a bushel.
Market participants have been watching for signs that prices are bottoming out, with large short positions held by investment funds seen creating scope for a turnaround.
Brazil’s 2023/24 soybean crop is expected to reach 147.7 million metric tons, agribusiness consultancy AgRural said on Monday, lowering a January forecast of 150.1 million tons after yield losses in key producing areas due to adverse weather.
Still, ample supplies are likely to weigh on prices.
In the United States, farmers must grapple with large corn inventories from last year’s harvest and with limited demand for feed from livestock producers, who reduced the nation’s cattle herd to its smallest level in seven decades.
Ample global supplies have intensified export competition.
In Russia, wheat export prices continued to fall last week, hitting their lowest since late 2020, but analysts still believe they need to be lower to be competitive.
“U.S. origins lack competitiveness on the international stage, which naturally limits the potential for a rebound,” consultancy Agritel said in a note.