Forexpros – Soybean futures were up on Wednesday, as adverse U.S. weather added to concerns over crop conditions in the U.S., while speculation China could loosen monetary policy in the near-term also lent support ahead of a critical European Union summit later in the day.
On the Chicago Mercantile Exchange, soybean futures for January delivery traded at USD12.3950 a bushel during European morning trade, gaining 0.45%.
It earlier fell by as much as 0.7% to trade at a daily high of USD12.4175 a bushel.
The Commodity Weather Group said Tuesday that it expected mostly dry and cold weather across major soybean growing states in the U.S. Midwest and Great Plains, potentially threatening yields and reducing the quality of the harvest.
The U.S. Department of Agriculture said in its weekly crop progress report published Monday that the amount of U.S. soybean crops harvested as of October 23 stood at 80%, below the 91% harvested in the same week a year earlier.
The U.S. is both the world’s largest soybean producing nation and the world’s largest exporter of the grain.
Soybean prices found further support after Chinese Premier Wen Jiabao said earlier that economic policy will be “fine-tuned as needed”, while adding that, “officials will make adjustments at a suitable time and by an appropriate degree.”
Separately, China’s Industry Ministry said it was studying “stimulative policies” for smaller companies, as a global slowdown threatens growth.
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the USDA.
Meanwhile, commodity traders continued to eye developments out of Europe in regards to the region’s ongoing debt crisis.
European Union leaders will meet for the second time in four days later Wednesday in an effort to reach agreement on measures to boost the size the region’s rescue fund, recapitalize banks and restructure Greek sovereign debt.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery added 0.35% to trade at USD6.5325 a bushel, while wheat for December delivery gained 0.77% to trade at USD6.4188 a bushel.
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