By Jesse Newman
CHICAGO--Soybean futures rebounded Thursday as buyers entered the market amid continued signs of robust demand for U.S. supplies. Corn and wheat slumped on a stronger U.S. dollar.
Prices for soybeans closed higher following a three-day slide in the market as buying by commodity funds developed in part due to a government report showing weekly export sales had topped analyst expectations, with China the main purchaser of U.S. supplies. Firm overseas demand, including from China, is seen as critical to making a dent in large soybean stockpiles, which were added to by what is likely to be record U.S. crop this year.
That crop could be even bigger than USDA recently estimated, according to private research firm Informa Economics, which released updated forecasts for crop production on Thursday. Informa pegged U.S. soybean output in 2016 at 4.38 billion bushels, analysts said, which is higher than USDA's latest estimate of about 4.36 billion bushels.
Soybean futures for January rose 5 1/4 cents, or 0.5%, to $10.29 a bushel at the Chicago Board of Trade.
Corn and wheat prices sank, buffeted in part by sharp gains in the U.S. dollar, which make domestic grain supplies less attractive to foreign importers.
Prices for corn also were weighed down by a bigger production forecast from Informa Economics, which pegged the 2016 crop at 15.275 billion bushels. The USDA's latest estimate for corn was 15.226 billion.
CBOT March corn futures fell 5 1/2 cents, or 1.5% cent, to $3.56 1/2 a bushel.
CBOT March wheat futures declined 8 3/4 cents, or 2.1%, to $4.09 1/4 a bushel.
Write to Jesse Newman at email@example.com(END) Dow Jones Newswires
December 15, 2016 17:02 ET (22:02 GMT)
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