2023-12-06 21:58:18
Private sales of U.S. wheat to China reached their highest level in four months. This is the largest wave of Chinese purchases in almost a decade.
Soybeans and corn fell as markets faced forecasts of needed rain in South America, reducing concern about drought damage to yields.
The most active March wheat CBOT contract ended up 2-1/4 cents at $6.33-1/2 a bushel, limiting gains after hitting $6.49-1/2, the highest level on a continuous chart of the most active contract since August 9.
Wheat futures jumped after the U.S. Department of Agriculture confirmed the private sale of 372,000 metric tons of U.S. soft red winter (SRW) wheat to China, the third sale announced in recent days .
The USDA confirmed the reservation of more than 1 million tons of wheat for China since Monday, representing the largest sales total to the Asian country in a week since July 2014 and almost the highest number of sales weekly never recorded.
“They definitely have a buying program going and I don’t think they’re done,” said Jeff Thompson, an analyst at Marex Capital.
The USDA also confirmed the sale of 136,000 tonnes of US soybeans to China.
Despite the demand, benchmark CBOT soybeans lost 10 cents to $12.95-1/2 a bushel after falling to 12.93-3/4, the contract’s lowest price since Oct. 13. Corn finished down 6-1/4 cents at $4.84-1/4 a bushel.
Corn and soybeans were influenced by weather forecasts for Brazil and parts of South America, where rain is forecast for the next two weeks, verifying concerns about the impact of drought on crop yields. crops.
Traders await updated harvest estimates Thursday from Brazil’s government agency Conab, as well as monthly supply and demand reports due Friday from the USDA. Analysts polled by Archyde.com expect the USDA to lower its estimates for Brazil’s soybean and corn harvests for 2023/24. (Additional information provided by Gus Trompiz in Paris and Peter Hobson in Canberra; edits by David Evans and Lisa Shumaker)
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