Soybeans edge higher, weaker US export demand caps gains

SYDNEY: US soybean futures edged higher on Friday, rebounding from losses of more than 1 per cent in the previous session, although gains were capped on tepid demand for North American supplies.

FUNDAMENTALS

The most-active soybean futures on the Chicago Board of Trade were up nearly 1 per cent for the week, the second straight weekly gain.


Soybeans were up 0.1 per cent at $8.98-1/2 a bushel by 0122 GMT, after closing down 1.2 per cent on Thursday when prices had earlier hit a Jan. 23 high of $9.12-1/2 a bushel.

The most-active corn futures gained more than 3 per cent for the week, the first weekly gain in a month.

The most-active wheat futures shed nearly 2 per cent for the week, the second straight weekly loss.

The US Department of Agriculture reported US soybean export sales in the week to Feb. 27 at 346,400 tonnes, below a range of trade expectations. Bookings to top global buyer China totalled just 6,012 tonnes, the lowest since September.

Agriculture Secretary Sonny Perdue on Wednesday predicted China will come into the US market for soybeans in late spring and summer.

Argentina's government earlier this week increased export levies on soybeans, soymeal and soyoil to 33 per cent from a previous 30 per cent to boost revenues.

MARKET NEWS
The dollar nursed savage losses against the yen and euro as a plunge in US yields to record lows wiped out the currency's single greatest attraction for investors - higher interest rates.

Asian shares fell following another Wall Street rout as disruptions to global business from the coronavirus beyond China worsened, stoking fears of a prolonged world economic slowdown.

Oil prices fell overnight as the coronavirus epidemic showed no signs of slowing, feeding worries about the global economy.

US stocks tumbled on Thursday, with shares of banks and travel companies taking a beating, as a new wave of fear about the spread of the coronavirus and its economic impact gripped investors just one day after election results powered a rally.