U.S. soybean futures rose Wednesday, ending a sharp selloff spurred by concern over the aftermath of the Japanese earthquake, while grain futures extended losses.
Soybeans for May delivery, the most active contract settled 17 cents, or 1.3%, higher at $12.87 a bushel at the Chicago Board of Trade.
Corn futures, which faced a similar selloff this week, initially rebounded before the spot month contract fell to a 9-week low, down 19 1/2c or 3.1%, lower at $6.16 1/2 a bushel for May delivery. The May wheat contract settled 5 3/4 cents, or 0.9%, lower at $6.62.
U.S. corn extended recent losses as investors continued to worry about a global economic slowdown. Japan's natural disasters and nuclear crisis continued to hang over grain futures as falling equities sent investors to the sidelines.
Commodity funds exited long positions on the perception corn prices peaked at a 32-month high March 4, said John Kleist, analyst at ebottrading.com. Funds sold an estimated 40,000 contracts.
Soybean, corn and wheat futures fell sharply Tuesday on concerns about Japan's nuclear crisis with corn and soybeans hitting one-day limits on declines set by the exchange.
Investors are paying close attention to the situation in Japan because it adds to concerns about future worldwide economic growth, which was already seen as shaky due to unrest in the Middle East and North Africa.
Soybean futures were able to strengthen as a rebound in Japan's Nikkei stock market overnight, which had been under heavy pressure, helped open the door for gains in agricultural commodities. Soybeans also benefited from a ministry estimate reducing China's 2011 soy acres plantings by 11.2%, said Rich Nelson, director of research at advisory and brokerage firm Allendale Inc.
Also, "reports of rains in Brazil disrupting harvests and delaying loadings of soybean supplies for export provided further support," he said.
Soybeans were able to withstand the pressure experienced in corn and wheat, as U.S. soybean exports to Japan are minimal compared to feed grains, limiting soybeans exposure to the repercussions of Japanese demand disruptions, said Shawn McCambridge senior grains analyst with Prudential Bache in Chicago.
Other markets
Soyoil futures also stabilized after facing sharp declines Tuesday, with the byproduct of soybeans also supported by higher crude oil futures. Crude oil influences soyoil due to its use in making biofuels.
May soyoil futures ended 0.08 cents or 0.2% higher at 52.96 cents a pound, but down from its session high of 54.20. Soymeal for May delivery rose $3.70, or 1.1%, to $344.50 per short ton at the CBOT.
Ethanol for May delivery climbed 3.7 cents, or 1.6%, at $2.289 per gallon, while oat futures for May delivery lost 9 cents, or 2.8%, to $3.15 per bushel at the CBOT. CBOT May rice slid 11 1/2c or 0.9% to $12.76 per hundredweight.
Hard red winter wheat for May delivery gained 1 1/4 cents, or 0.2%, to $7.78 1/4 a bushel at the Kansas City Board of Trade. Hard red spring wheat for May delivery fell 1 1/2 cents, or 0.2%, to $8.06 at the Minneapolis Grain Exchange.
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