HAMBURG, March 4 (Reuters) -
Chicago soybeans and corn rose on Monday in bargain buying after hitting three-year lows last week but plentiful supply from South America limited gains.
Wheat fell in continued pressure from cheap Black Sea export supplies, especially Russian.
Chicago Board of Trade most-active soybeans rose 0.6% to $11.58-3/4 a bushel at 1211 GMT after hitting their lowest since November 2020 last week.
Corn rose 0.4% to $4.26-1/2 a bushel, also having slid to the lowest since November 2020 last week. Wheat rose 0.3% to $5.54 a bushel following Friday’s sharp falls.
Forecasts of good Brazilian crops weakened soybeans last week while hefty South American and U.S. supplies depressed corn.
“Corn and soybeans are benefiting from bargain-buying after strong price falls last week but the rise rather looks like lacking conviction, appearing like a dead cat bounce against a continued bearish background picture of big South American supplies,” said Matt Ammermann, StoneX commodity risk manager.
“For soybeans, Brazilian harvest and export pressure remain in place. As Brazilian exports reach their seasonal peak soon it is difficult to see how the U.S. can compete.”
“World
corn
supplies are also looking large and the question is whether Chicago corn will be able to hold the $4 level this week.”
Some analysts have downgrading Brazilian forecasts but the crop is still hefty. Argentina expects a bumper
soybean crop
.
“Cheap export supplies from Russia and elsewhere in the Black Sea are undermining wheat," Ammermann said. "Falling Russian cash markets are weakening Chicago and attention will be on if Russian export prices fall below the $200 a ton FOB level this week.”
“Low prices are starting to generate new import demand, with a new purchase tender from
Algeria
. But markets will be watching to see if cheap Russian supplies dominate offers to Algeria.” (Reporting by Michael Hogan in Hamburg, additional reporting by Peter Hobson in Canberra; Editing by Rashmi Aich, Sohini Goswami and Chizu Nomiyama)
