LONDON, Dec 22 (Reuters) – U.S. soybean prices rose on Tuesday, boosted by patchy rainfall in parts of major exporter Brazil, while wheat also edged up on concerns that a forecast cold snap in the Black Sea region next week could diminish crop prospects.
Chicago Board of Trade January soybeans rose 0.3 percent to $8.93-1/4 a bushel by 1218 GMT.
“We combine Brazilian weather issues and net short speculative positioning, these are quite supportive for beans,” said one agricultural commodities analyst.
“There is no bull case scenario for beans, but people will be unwilling to sell beans at this stage.”
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Brazil’s 2015/16 soybean crop forecast was lowered to 97.9 million tonnes, from 101.1 million previously, because of irregular rainfall in the centre-west and smaller northern and northeastern grain belts, local analyst Franca Junior said on Friday.
Weekend rain was patchy in the centre-west region and, despite more showers in the next couple of days, about 20 percent of Brazilian soybeans could still be facing stress, the Commodity Weather Group said in a note.
Gains in soybeans were capped by expectations that Argentina will liquidate stored grain and soybeans after its currency devaluation and export tax cuts. That would stiffen competition for U.S. soybeans, which have achieved strong sales to China in recent weeks.
“Argentinian farmers have accumulated significant inventories for inflation hedging purposes and could be incentivized to sell as President Macri promises to lower soybean export tariffs,” Goldman Sachs said in a note.
CBOT wheat prices were higher with March up 0.3 percent at $4.80-1/2 a bushel.
Dealers said mild weather in both North America and Europe had left many winter wheat crops without snow cover. Crops in central Ukraine and central Russia could be particularly vulnerable with temperatures expected to fall next week.
“If cold temperatures are not forecast in Europe for the next few days, this is not the case in Black Sea area. Without snow protection, crops could be downgrade by the frost,” Agritel said in a daily market update.
March wheat in Paris rose 0.3 percent to 175.25 euros a tonne.
Corn prices also edged higher with CBOT March up 0.1 percent at $3.72-1/2 a bushel.
