SINGAPORE: As a result of planting delays in the United States and significant gains in oil prices, agricultural commodities were buoyed on Monday. Chicago soybeans futures reached their highest level in three weeks, while corn reached its highest level in more than a month.
Wheat gained after ending the previous session largely unchanged. US conditions are not great for planting and we have bullish US provides details regarding establishing expectations and stocks,” a Singapore-based grains merchant said.
As of 0054 GMT, the most-active soybeans futures contract on the Chicago Board of Trade (CBOT) was up 0.5 percent at $15.13-1/2 a bushel, having reached its highest level since March 13 at $15.17 a bushel earlier in the session.
After rising to $6.66-1/2 a bushel earlier in the day, the price of corn increased by 0.7 percent to $6.65-1/4 a bushel.
Wheat increased 0.9 percent to $6.98-3/4 per bushel. In the coming weeks, plantings may be postponed due to wet weather in the southern portion of the US crop belt and heavy snow in the Dakotas and Minnesota.
Bullish planting and stocks reports issued by the US Department of Agriculture (USDA) bolstered Chicago soybean and corn futures.
In a poll of analysts conducted by Reuters, the government estimated that 87.5 million acres of soybeans would planted in 2023. This figure represents a slight increase from 2022 and is close to the low end of estimates.
Soy stocks were also report at 1.685 billion bushels on March 1 by the USDA, down 13% from a year earlier. The agency estimated corn stocks at 7.401 billion bushels for the third quarter, the lowest for March 1 in nine years.
The USDA anticipates 92 million acres of corn plantings in 2023, an increase of 4% from 2022.
A meeting in unrefined petroleum costs offered extra help to soybean and corn costs with developing utilization of grains and oilseeds in making biofuels.
On Monday morning, a surprise announcement by OPEC+ to further reduce production in an effort to maintain market stability sent oil prices up about $5 per barrel.
According to regulatory data released on Friday, large speculators reduced their net short position in CBOT corn futures in the week ending March 28.
The weekly commitments of traders report from the Commodity Futures Trading Commission also revealed that non-commercial traders, which include hedge funds, reduced their net short position in CBOT wheat and their net long position in soybeans.