Soybeans extend gains into third session on strong demand

10/17/2021 | 09:20pm

CANBERRA, Oct 18 (Reuters) - U.S. soybean futures edged higher on Monday, extending gains into a third session, as strong demand for U.S. supplies underpinned prices.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade were up 0.1% at $12.18-1/2 a bushel by 0102 GMT, having firmed 1% on Friday.

* The most active wheat futures were up 0.1% at $7.35 a bushel, having closed up 1.3% on Friday.

* The U.S. Department of Agriculture (USDA) last week projected supplies of corn and soybeans higher than market expectations.

* U.S. exporters sold soybeans either to China or "unknown destinations" for a third consecutive day on Friday. U.S. exporters sold 132,000 tonnes of soybeans to China for the 2021/2022 marketing year, the USDA said on Friday.

* The U.S. soybean crush hit a three-month low in September and fell below an average of trade estimates, while soyoil stocks at the end of last month rose for a third straight month, according to data released by the National Oilseed Processors Association on Friday.

MARKET NEWS

* The dollar edged lower against a basket of major currencies on Friday, on track to end its five-week winning streak, as global risk appetite rebounded, helping reduce demand for the safe-haven currency.

* Oil prices settled at a three-year high above $85 a barrel on Friday, boosted by forecasts of a supply deficit in the next few months as the easing of coronavirus-related travel restrictions spurs demand.

* Asian shares were on edge on Monday morning ahead of the release of Chinese economic data for the third quarter, as investors fret about the health of the world's second-largest economy even as U.S companies report strong quarterly earnings.

(Reporting by Colin Packham; Editing by Subhranshu Sahu)

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