Grain futures recover, Soybeans rise due to US export demand

US grain futures recovered strength this Thursday, with front month soybean prices rising amid improvement in demand for US supplies.

On the Chicago Mercantile Exchange, soybeans futures for May delivery increased 1% and traded at 14.1813 a bushel. The May contract increased 1.15% earlier in the session and hit a session high of 14.1938 USD a bushel.

Soybean prices recovered after the US Department of Agriculture announced that US farmers sold 116,000 tons to unknown buyers for delivery in the year starting September 1st.

Market analysts typically interpret sales listings to unknown destination as a sign of Chinese buying.

China is the world’s largest soybean consumer, responsible for almost 60% of the global grain trade.

The USDA reported a sale of 392,000 tons of US soybeans to China earlier this week.

Meanwhile, corn futures for May delivery rose 0.5% and traded at 6.4262 a bushel. The front month contract increased 0.6% earlier this session and hit a session high of 6.4362 a bushel.

The May contract dropped to a two week low of 6.3612 USD a bushel this Wednesday due to weather forecasts predicting favorable weather conditions in the US Midwest, which can possible help increase early season corn planting.

The uncertainty over shifting weather forecasts kept traders careful about pushing prices lower.

Wheat for May delivery increased 0.6% and traded today at 6.9612 USD a bushel. The front month May contract increased by 0.7% earlier this session and hit a session high of 6.9688 a bushel.

Traders continued to monitor the US Great Plains region weather conditions which might aid the winter wheat crop and allow planting of spring wheat.

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