By Jesse Newman
CHICAGO--Corn and soybean prices rebounded Thursday, as light buying and robust demand shored up prices for some crops.
Soybean prices resumed a multiday rally after sinking 2% in the previous session following a U.S. Department of Agriculture report that raised its forecast for record production of the crop. The government on Wednesday said farmers this year would harvest 4.36 billion bushels of the oilseeds, which far exceeds earlier records.
Still, traders a day later trained their sights on strong demand for U.S. oilseed supplies, boosting prices after the USDA said private exporters had booked sales of 126,000 metric tons of soybeans for delivery to China during the2016-17 crop year. News of the sale, which is further evidence of China's big appetite for U.S. soybeans, bolstered prices even though a weekly report from the USDA showed net sales for the week ended Nov. 3 came in below analyst expectations.
Soybean futures for November climbed 7 cents, or 0.7%, to $9.89 a bushel at the Chicago Board of Trade. Support for prices also came from strength in the soybean oil market, which rose 1.3% on Thursday.
Higher soybean prices helped prop up the corn market after prices for the grain sank nearly 4% in the previous session on a surprise boost to the government's projection for output this year. The USDA said corn production would total nearly 15.23 billion bushels, topping analyst expectations and last month's USDA estimate.
CBOT December corn futures gained 2 3/4 cents, or 0.8%, to $3.43 1/2 a bushel.
Wheat prices fell to a fresh two-week low, pressured in part by a stronger U.S. dollar, which makes domestic farm goods like wheat more expensive for overseas buyers.
CBOT December wheat declined 2 cents, or 0.5%, to $4.04 3/4 a bushel.
Write to Jesse Newman at firstname.lastname@example.org
(END) Dow Jones Newswires
November 10, 2016 16:38 ET (21:38 GMT)
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