By Jesse Newman

 

CHICAGO--Prices of U.S. soybean futures jumped on Thursday because of strong export sales and short-covering by investors.

Wheat prices closed lower, while those for corn were mixed.

Soybean rose off a more-than-two-month low following a report by the U.S. Department of Agriculture that showed net soybean sales last week totaled 601,000 metric tons for delivery in the 2015-16 and 2016-17 seasons, which came in at the high end of analysts' expectations.

The solid sales figure helped prompt a round of short-covering that bolstered the soybean market, analysts said, as some investors closed out of bearish bets on the oilseeds amid hopes for a prolonged uptick in demand. A weaker U.S. dollar also supported prices for the crop.

"Soybean prices had gotten so cheap, maybe [traders thought] there was not a lot of downside left," said Bill Nelson, a senior economist with agricultural-research firm Doane Advisory Services in St. Louis. He added that rising prices for soybean oil, a vegetable oil made from the crop, also shored up the soybean market. Lower-than-expected production and inventories of soyoil's rival, palm oil, in Malaysia pushed soyoil futures 1.9% higher on Thursday.

Soybean futures for March rose 11 1/4 cents, or 1.3%, to $8.73 1/2 a bushel at the Chicago Board of Trade. Prices for the oilseeds fell to the lowest settlement price since Nov. 20 on Wednesday.

Wheat prices fell, as short-covering in that market tapered off. Prices for the grain had risen earlier in the day as investors exited bets on lower prices, but massive domestic and world stockpiles plus sluggish demand for U.S. supplies ultimately weighed on the market. "Export sales are pretty ho hum" for wheat, said Mr. Nelson. CBOT March wheat shed 3 cents, or 0.7%, to $4.58 1/4 a bushel.

Meanwhile, corn prices were mixed, with nearby futures contracts unchanged while later-dated contracts slipped due to disappointing export sales and falling prices for crude oil. CBOT March corn were flat. May-dated futures shed 1/4 cent, or 0.1%, to $3.65 a bushel.

Write to Jesse Newman at jesse.newman@wsj.com

 

(END) Dow Jones Newswires

February 11, 2016 17:53 ET (22:53 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.