Soybean futures on the Chicago Board of Trade (CBOT) gained on Thursday, recovering losses from the previous session as lingering concerns about adverse weather conditions in South America provided support for prices.
Market sentiment was further bolstered by easing fears of a U.S. trade war with China, the world’s largest importer of soybeans. Traders closely monitored weather developments in Argentina, the leading exporter of processed soybeans, as it competes with the U.S. for global market share.
The International Grains Council recently revised its global production forecasts for soybeans and corn, citing lower crop expectations in Argentina. The Buenos Aires Grains Exchange reported that hot and dry conditions earlier in the year had already hurt crops, with heat now returning to the nation’s key grain-growing areas.
“We still have some concerns about Argentina,” said Ted Seifried, Chief Market Strategist at Zaner Ag Hedge, highlighting ongoing weather-related risks.
CBOT March soybean futures (SH25) closed 13-3/4 cents higher at $10.45-1/2 per bushel.
Meanwhile, corn futures also edged higher, with the March contract (CH25) rising by 1/2 cent to settle at $4.98 per bushel. Corn prices had reached a 16-month high of $5.04-1/2 on Wednesday. Analysts expect higher corn prices to prompt U.S. farmers to increase plantings this spring. Agricultural lender CoBank forecast a 4% rise in U.S. corn plantings for 2025, predicting 94.55 million acres to be planted.
Traders are awaiting the release of weekly U.S. grain and soybean export sales data on Friday. A Reuters poll forecasts corn exports between 900,000 to 1.6 million metric tons, and soybean exports between 100,000 to 500,000 metric tons for the 2024-25 marketing year.
In a positive development for agricultural markets, U.S. President Donald Trump stated on Wednesday that a trade deal with China was within reach, alleviating concerns over the potential impact of tariffs on agricultural exports.
In contrast, wheat futures saw a decline, as fears of cold weather damaging U.S. crops subsided. CBOT March wheat (WH25) closed down 6-1/2 cents at $5.85-1/2 per bushel.
