By Luzi Ann Javier
June 16 (Bloomberg) -- Soybean futures rallied and wheat futures rose for the first time in five sessions as investors judged yesterday’s plunge as excessive and the U.S. said planting of the oilseed remained behind the five-year average.
Soybeans yesterday posted the biggest closing-price drop since Feb. 17 and wheat fell to the lowest in almost a month as the dollar gained. Some 87 percent of soybean crops were sown, down from the five-year average of 92 percent, the U.S. Department of Agriculture said yesterday in a report released after the close of trading in Chicago.
“There continue to be problems as far as planting” in the U.S. is concerned, Peter McGuire, managing director at Commodity Warrants Australia Pty in Sydney, said by phone today.
July-delivery soybeans gained as much as 1.7 percent to $12.17 a bushel, after closing down 3.9 percent yesterday. The futures traded at $12.13 a bushel at midday in London. The November-delivery contract gained 1.6 percent to $10.4125 a bushel. The U.S. begins harvesting the next soybean crop in September.
Wheat for July delivery rose as much as 1.1 percent to $5.815 a bushel in Chicago, after dropping to $5.68 yesterday, the lowest since May 18.
Euronext milling wheat for November delivery rose 1.50 euros, or 1 percent, to 147.50 euros a metric ton in Paris.
About 9 percent of U.S. winter-wheat was harvested as of June 14, compared with 5 percent a week earlier, 16 percent a year earlier and the previous five-year average of 19 percent, the USDA said.
Export Inspections
The U.S. inspected 12.5 million bushels of soybeans for export in the week ended June 11, 36 percent higher than the 9.2 million bushels inspected a week earlier, the USDA said yesterday in separate report. Corn export inspections totaled 31 million bushels, 17 percent higher than 26.5 million bushels a week earlier, the report said. The U.S. is the world’s biggest grower and exporter of soybeans and corn, according to USDA data.
“There could be a shortfall, which in turn will probably force prices up,” McGuire said. “We might be seeing a continuous strengthening of the corn, soy and wheat prices over the coming months.”
South Korea has bought up to 825,000 tons of corn, 220,000 tons of soybean meal and 110,000 tons of feed wheat from overseas since June 11, said two industry executives who are familiar with the purchases. The executives asked not to be identified as the trades were confidential.
Corn for July delivery gained as much 1.2 percent to $4.11 a bushel in Chicago. The most-active contract yesterday lost as much as 4.7 percent to $4.055 a bushel, the biggest drop since Jan. 13.
To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net
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