Soybeans exceed two-month high on China buying, US inventory shock

December wheat was up 3 cents, or 0.62 percent, to close at 4.8725 dollars per bushel.

INTL FCStone on Tuesday raised its estimate of the average US 2019 corn yield to 169.3 bushels per acre, from 168.4 in its previous monthly report released on September 4. Corn futures approached a seven-week high after the USDA report also showed tighter-than-expected inventories of the yellow grain.

Within the overseas markets, the crude oil market is $1.38 per barrel decrease, the US greenback is more significant, and the Dow Jones Industrials are 156 factors greater.

Still, recent Chinese purchases of USA soybeans and lower-than-expected estimates for North American supplies limited losses. Most-active wheat futures were up 2.3%at $4.98-1/4 a bushel.

Also adding some support was the continued delays in harvesting, though the USDA report on Monday largely met expectations for soybeans. November soybeans were up 0.25 cent, or 0.03 percent, to settle at 8.83 dollars per bushel.

But private exporters on Wednesday reported to the USDA export sales of 581,000 metric tons of soybeans for delivery to China during the 2019/2020 marketing year. Chinese buyers have recently made a string of purchases, though, including up to 600,000 tonnes on Monday, according to traders.

The deals offered some support to a market anxious that the prolonged U.S./China trade war will continue to depress Chinese imports of U.S. soybeans.

Spring wheat harvested was 89 percent, behind last year's 100 and the average of 98.

Wheat futures ended higher after a five-session slide, buoyed by short covering and concerns about wet conditions damaging USA spring wheat crops.

"Soybeans, corn and wheat markets are all seeing a pullback today with some profit taking and re-positioning after their strong rises this week", said Matt Ammermann, commodity risk manager at INTL FCStone. Soy stocks, however, were up 108 per cent from the same point previous year, largely due to the drop in United States exports to China.

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