Corn, soybeans recover from three-year lows

February 24, 2024 00:00:00

SINGAPORE/PARIS, Feb 23 (Reuters): Chicago corn and soybean futures edged higher on Friday, with bargain-buying lifting prices after both markets dropped to their lowest levels in three years, although plentiful supplies are likely to limit gains.

Wheat rose for a second session on supply concerns as potential US sanctions against top global wheat exporter Russia could hit flows.

"As has been the case for some time now, the principal cause of price declines remains the improved international production outlook, built upon expectations for large harvests in major grain exporters, including Brazil and Russia," BMI, a unit of Fitch Solutions, said in a report.

"Meanwhile, the recent strength of the US dollar has also weighed on the prices of agricultural commodities."

The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.1% to $11.53-3/4 a bushel, as of 0346 GMT, having dropped 1.5% this week.

Corn added 0.7% to $4.21-1/2 a bushel, having gained almost 1% this week. Wheat was up 1.3% at $5.87 a bushel.

Corn prices dropped to their lowest levels since late 2020 on Thursday.

Expectations of higher corn and soybeans production in top South American producers - Brazil and Argentina - are weighing on Chicago futures.

Argentina's corn and soybean crops continue to improve due to recent rains, the Buenos Aires grains exchange said on Thursday, with more rainfall expected in the coming days after wet weather conditions helped curb damages from a heat wave last month.

Following a record-large US corn harvest in 2023, outlooks for rising grain stockpiles and falling Chinese demand for animal feed have spurred speculators to build massive net short positions in corn and soybean futures.

Strong competition on the global market has been weighing on wheat prices in recent weeks.

Ukraine has exported almost 4.3 million tonnes of grain so far this month, exceeding the 3.8 million tonnes exported over the same period a year earlier, agriculture ministry data showed on Friday.