(Bloomberg) -- Soybean futures edged higher in Chicago amid light post-holiday trading. Corn and wheat also eked out gains.
Soy traders are evaluating the outlook for next year, with a focus on weather in South America. In Brazil, the world’s top supplier, nearly ideal conditions mean farmers are expected to collect a bumper harvest. But in neighboring Argentina, the forecast continues to remain dry, with some of the nation’s crop coming under stress.
On the demand side, there’s uncertainty about the future of US biofuel policy under the incoming administration of President-elect Donald Trump. And there’s concerns over a renewed trade war between the US and China. For now, the latest weekly US data published on Dec. 23 signaled robust demand for soybean exports, with inspection figures topping year-ago levels by 56%. Weekly shipment figures will be released on Friday.
“We’ll watch to see if China or other destinations show up for exports in the next few days, otherwise it should be pretty quiet trade,” Nick Paumen, an analyst at CHS Hedging, wrote in a note.
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