GRAINS – soybean company with crop data at a glance
By Gus Trompiz and Matthew Chye
PARIS/SINGAPORE, February 7 (Reuters) – Chicago soybean futures edged higher on Tuesday, leaning on higher vegetable oil prices as participants awaited the U.S. government’s crop forecast for a final gauge of North America’s crop outlook. South.
Corn and wheat fell slightly as attention turned to the US Department of Agriculture’s (USDA) monthly world crop report released on Wednesday.
Investors were also to wait for a speech by US Federal Reserve Chairman Jerome Powell later Tuesday for further clues on interest rate policy. MKTS/GLOB
The most active Chicago Board of Trade (CBOT) soybean contract Sv1 was up 0.5% at $15.29-1/2 a bushel at 12:22 GMT.
Soybean oil futures BOv1 were higher, following the strength of palm oil after Indonesia announced it would suspend some export permits, while soybean meal SMv1 slowed as traders assessed rain forecasts for drought-hit Argentina.
The market is also pricing in an expected record harvest in Brazil, although early harvests have been slowed by heavy rains.
“The next 36 hours is a countdown to Wednesday’s WASDE fireworks,” Peak Trading Research said in a note, referencing the USDA’s February report. Estimates of world agricultural supply and demand (WASDE).
“Traders will be watching South American crop estimates and Chinese demand figures.”
Grain markets will also receive a supply update on Tuesday from authorities. Canadian stocks estimates.
CBOT corn CV1 fell 0.3% to $6.77-1/4 a bushel while wheat Wv1 fell 0.3% to $7.48 a bushel.
The corn market is also looking to get a clearer picture of South American crop potential, as well as the upcoming planting season in the United States, where farmers plan to increase corn area.
Expected rains in some U.S. growing areas capped wheat prices, although parts of the Plains’ harsh red-winter belt remained dry.
The wheat market was also awaiting the results of two international tenders published by Algeria as a further indication of competition for supplies from the Black Sea.
(Reporting by Gus Trompiz in Paris and Matthew Chye in Singapore; Editing by Subhranshu Sahu and Tomasz Janowski)
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