Soybean futures are rising, but the outlook for the US crop is limiting gains.
Favorable weather and expectations of a robust harvest in the US are containing a more significant price increase for the commodity in Chicago.
By Tom Polansek
CHICAGO (Reuters) - Soybean futures on the Chicago exchange hit their highest level in more than a week on Thursday, with technical buying helping the market recover from a three-month low recorded on Monday, according to analysts.
Corn futures fell after rising in the previous three sessions, recovering from contract lows set on Monday.
Both markets continued to face pressure from expectations of large fall harvests in the US and more favorable weather for crops in the world's largest corn-producing country and second-largest soybean producer.
"We are heading into a harvest season, and the weather doesn't look threatening," said Don Roose, president of the brokerage firm US Commodities.
Higher contract prices for CBOT soybean oil helped boost soybean futures, traders said.
The most active soybean contract ended up 6 cents at $10,26 per bushel, its highest level since July 7. The market extended gains after already rising on Wednesday, fueled by hopes of increased demand for US supplies from Indonesia and China, the main importing market.
Corn on the Chicago Board of Trade ended down 3 cents at $4,21 per bushel. The December contract, which represents the crop farmers will harvest this fall, hit a low of $4,07 on Monday.
"Although weak prices have attracted opportunistic demand, the favorable weather forecast may cause these lows to be tested again in the coming weeks," said analysts at Rabobank.
US President Donald Trump raised concerns about corn demand on Wednesday by saying that Coca-Cola had agreed to use cane sugar in its US beverages. Coca-Cola produced for the US market is normally sweetened with corn syrup.
Approximately 400 million bushels of corn are used annually to produce corn syrup for beverages and other food products, representing about 2,5% of U.S. corn production, according to U.S. government data.
Meanwhile, the most active wheat futures contracts closed down 7 cents, at $5,33 per bushel.
(Reporting by Tom Polansek in Chicago. Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra)
