Soybean Futures Reach Three-Year High on Strong Demand, Crude Rally

Soybean futures at the Chicago Board of Trade (CBOT) surged to their highest levels in three years, buoyed by a rally in crude oil and strong export demand. The U.S. Department of Agriculture reported flash sales of 272,000 tonnes of soybeans to China and an additional 206,500 tonnes to unknown destinations.

Positioning ahead of Friday's monthly USDA supply/demand estimates also contributed to the gains, as traders adjusted their positions in anticipation of the report. The average trade guesses call for small cuts to yields and production from the August forecast.

Corn futures were also boosted by the rally in crude oil and positioning ahead of the report, while wheat futures rose due to ongoing disruptions in grain movement through the Black Sea as a result of the escalating conflict between Russia and Ukraine.