Soybean Prices Extend Rebound After Four-Year Lows
Soybean futures on the Chicago Board of Trade (CBOT) closed higher on Tuesday, supported by short-covering and a continuation of last week’s recovery from a four-year low.
Corn futures also edged up, while wheat prices declined ahead of the reopening of U.S. grain markets.
March soybean futures rose 0.6% to $358.34 per ton, corn climbed 0.2% to $176.57, and wheat fell 1.1% to $196.48 per ton.
The soybean market has been under pressure recently due to forecasts of a record crop in Brazil, the world’s largest soybean exporter and a key competitor to the United States in global markets.
A recovery in soybean meal futures, which also dropped to their lowest level since 2020 last week, provided additional support to soybeans.
Meanwhile, a strong U.S. dollar weighed on grain markets, as it makes American agricultural products more expensive in export markets, traders noted.
The U.S. Department of Agriculture (USDA) is scheduled to release its weekly export sales data for grains and soybeans on Friday, delayed by one day due to the Christmas holiday. This report will be closely watched for updates on export demand amid shifting global dynamics.
The rebound in soybean prices could benefit producing countries such as Ukraine, Argentina, and Brazil, as well as their respective currencies.
As major exporters of soybeans, these countries stand to gain from higher global prices, which could boost their agricultural revenue. In turn, this increased revenue may strengthen their local currencies by improving trade balances and attracting foreign investment.

