Chicago Board of Trade soybean futures closed higher on Wednesday, halting a run of eight consecutive sessions of losses as traders reshuffled positions ahead of the U.S. Department of Agriculture's monthly crop forecasts scheduled for Thursday.
Specific contract moves were modest but notable. July soybeans finished the session up 9-1/4 cents, or 0.8%, settling at $11.23 per bushel. That followed a dip to $11.10-1/4 on Tuesday, which marked the contract's lowest intraday reading since February 4. The November soybean contract rose 6-1/2 cents, or 0.6%, to close at $11.38-1/2 per bushel.
Products tied to soybeans also advanced. July soymeal gained 80 cents, or 0.3%, to end at $301.90 per short ton, while July soyoil increased 0.42 cent, or 0.6%, finishing at 75.33 cents per pound.
Two forces were highlighted in dealer commentary as underpinning the market move. First, crude oil futures strengthened after President Donald Trump said the U.S. is going to attack Iran "very hard" if no peace deal is finalized. The rise in oil helped oilseed markets because of their connection to biodiesel fuel demand, with soyoil often moving in tandem with crude when biofuel economics respond to energy prices.
Second, analysts surveyed by Reuters expect the USDA to raise its estimates of soybean harvests in Brazil and Argentina in Thursday's supply-and-demand report. That anticipatory adjustment in market positioning contributed to Thursday's pre-report trading activity.
Weather forecasts added a countervailing factor. Widespread rain across the U.S. Midwest during the week, along with cooler temperatures following expected late-week heat, were seen as beneficial for crop germination and early growth. Those improving near-term crop prospects constrained the size of the price gains despite the supportive influence from crude.
Market context: Traders entered the session positioning for potential revisions in global supply estimates from the USDA report, while near-term weather and energy-market developments limited the magnitude of the rally.