Chicago Soybean Hits 10-Week High, Wheat Declines

Soybean futures in Chicago Board of Trade touched 10-week high on Tuesday due to a bullish demand expectation. Corn ended slightly higher, but wheat fell.

Corn future for May delivery gained 6.75 cent, closing at 3.9425 U.S. dollars a bushel. May soybean gained 14.5 cents to 10.36 dollars per bushel, climbing to 10.43 dollars early in the session, the highest level since Jan. 26. May wheat was down 1 cent, settled on 5.2225 dollars per bushel.

The USDA Foreign Agriculture Service said in a report on Tuesday that China's oilseed production for the 2009/2010 marketing year is forecasted at 56.9 million tons, down slightly from the previous estimate of 57.2 million tons. It is expected that China's imports of oilseeds may increase to 38 million tons, up from the former estimation of 36.2 million tons in light of expected GDP growth and continued development of the Chinese livestock sector.

The National Oilseed Processors Association released its soybean crush report for March on Tuesday morning. Total crush was pegged at 137.257 million bushels, much up from 128.668 last month and in line with trade expectations.

Rainfall of up to 1 inch is forecasted during this weekend, which is expected to cause further delays in corn planting that will show up on next Monday's USDA weekly Crop Progress Report. The first report for 2009 indicated Corn planting progress is at 2percent this week versus the 5 year average of 6 percent.

Traders said that selling in outside markets and prospects for rain in dry areas of the soft red wheat areas on this weekend pressured wheat. Weather forecast said the Midwest should see up to an additional 1 inch over the weekend.