U.S. soybean futures are positioned for a higher start Tuesday, continuing their recovery from prior declines on broader based commodity gains amid supportive external market influences.
CBOT soybeans are called to open 10 cents to 12 cents higher.
In overnight trading, Chicago Board of Trade July soybeans were up 11 3/4 cents at $13.47 1/2 a bushel, and new crop November futures were up 11 1/2 cents at $13.47.
Traders continue to look beyond the soybean market to the outside markets for guidance, with a lower U.S. dollar index providing price support. The dollar slipped overnight versus the euro as investor's appetite for risk increased after European leaders pledged to head off Greece sovereign debt concerns.
A lower U.S. dollar is supportive for commodities as most raw materials are dollar-denominated, making it less expensive for foreign buyers to import.
The lower dollar produced buying across commodities in general, with crude oil, grain and precious metal futures all rising overnight.
Meanwhile, a change in the weather forecasts are driving prices to strong gains as well, with a more threatening weather forecast for the U.S. offered by the weather models this morning, said Brian Hoops, president Midwest Market Solutions, a South Dakota based brokerage in a market note. A high pressure ridge in both the European and U.S. weather models gets amplified and expands over the western Midwest to produce a lengthy hot and dry period for U.S. crops, Hoops added.
Nevertheless, futures are expected to continue to hold within recent trading ranges, with any advances limited by improved near term planting and development weather.
U.S. Department of Agriculture on Monday reported soybean plantings advanced to 94% complete nationwide, slightly ahead of average, with 82% emerged, compared to 86% on average. Crop ratings edged higher after a good start in last week's initial report, suggesting above normal yield potential, said Bryce Knorr, analyst with Farm Futures, an agricultural publication in market note.
Crop conditions stayed steady at high levels in Iowa, with soybeans rated 82% good to excellent. In Illinois, where there have been heavy rains in southern areas, the good-to-excellent rating slipped one percentage point to 63% for soybeans.
In Ohio, which suffered some of the worst planting delays due to rain, the good-to-excellent rating jumped 17 percentage points to 60% for soybeans. Soybeans in the state were 91% planted, up from 77% a week ago and behind the average of 97%, and 66% emerged, up from 29% a week ago and behind the average of 92%.
Meanwhile, lingering concerns that some U.S. soy acreage won't get planted due to persistent rains and flooding will add support. Traders are looking ahead to end of month government projections on acreage and grain supplies as of June 1.
A big concern for traders is the number of soybean acres that will be lost due to persistent rains in the Northern Plains as well as acres lost to flooding in the Missouri River Valley.