US soybeans edged higher on Tuesday, rebounding off a more than six-year low, although fears of a rapidly cooling economy in China, the world’s largest buyer of the oilseed, kept gains in check. Corn rose 1 percent as prices hit a near two-week high, supported by forecasts for smaller than expected U.S. production.
Wheat extended two-day gains to nearly 2 percent despite the U.S. Department of Agriculture pegging the progress of the spring wheat harvest above market expectations.
Chicago Board of Trade November soybeans rose 0.5 percent to $8.78-1/4 a bushel, having closed down 1.7 percent in the previous session when prices hit a contract low.
Front-month soybeans rose 0.4 percent to $8.96-1/2 a bushel, having closed down 1.3 percent in the previous session when prices hit a low of $8.74 a bushel – the lowest since March 2009.
“Ultimately we are seeing a reaction to the losses overnight,” said Andrew Woodhouse, grains analyst at Advance Trading Australasia. “The market must realise that China will still need grain.”
Analysts also noted some support from a supply disruption in South America. Argentine farmers started a five-day crop sales strike on Monday, part of an election-year push in the world’s No. 3 soybean exporter to change policies that they say have killed profits under outgoing President Cristina Fernandez.
The USDA pegged 63 percent of the soybean crop at good to excellent condition, matching analyst expectations. December corn rose 1 percent to $3.84-1/2 a bushel, after gaining 0.7 percent the session before.
The four-day Pro Farmer Midwest crop tour forecast an average U.S. corn yield of 164.3 bushels per acre, enough to produce a 13.323 billion-bushel crop, the third-largest ever. The forecast was below USDA’s Aug. 12 estimate of 13.686 billion bushels, with average yield projected at 168.8 bushels per acre.
The USDA says 69 percent of the corn crop is good to excellent, in line with market forecasts. December wheat rose 1 percent to $5.13-1/4 a bushel, having closed up 0.8 percent on Monday.
The harvest of the U.S. spring wheat crop is 75 percent complete, the USDA said, 7-percent higher than analyst forecasts.