Soybeans firm on demand optimism, wheat faces pressure from Black Sea supplies

Chicago soybean futures ticked higher on Thursday, gaining more ground as expectations of demand recovery from top importer China, amid easing Covid-19 curbs and dryness in Argentina, underpinned the market.

Wheat dipped after last session's strong gains as prices were weighed down by record Russian supplies, while corn firmed.

"Talk of improving demand from China plus further indications of dry soils in Argentina helped support the buying," Hightower said in a report.

The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.3% to $14.76-1/2 a bushel, as of 0259 GMT, while wheat lost 0.2% to $4.78-1/4 a bushel. Corn rose 0.2% to $6.42-3/4 a bushel.

Soybeans are being supported by optimism that easing Covid-19 lockdown measures in China will fuel further exports.

China's November imports of soybeans fell 14% on the year to 7.35 million tonnes, customs data showed on Wednesday, as logistics woes in top supplier the United States helped confound expectations for a significant rise.

Argentina soybean sales surged last week to 74.2% of the current harvest, helped by a preferential exchange rate, though sales trailed the totals seen at the same point last year, the government said Wednesday.

Export demand for US wheat has been strong this week, though US wheat remains expensive compared to Black Sea supplies.

Russia-focused agriculture consultancy Sovecon said on Wednesday that it had raised its forecast for Russia's 2022/23 July-June wheat exports to 43.9 million tonnes from 43.7 million tonnes due to current active shipments.

Forecasts for a record crop in Australia have also eased global supply concerns and added weight to US wheat markets.

Commodity funds were net buyers of CBOT wheat, soybean, soymeal and corn futures contracts on Wednesday and net sellers of soyoil futures, traders said.