Soybean futures rebound 2% from three-week low

Soybean futures rose nearly two percent in American trade away from January 18 lows even as the dollar index hit January 24 highs, following earlier data from the US, the world's largest soybean producer and exporter. 

As of 08:47 GMT, soybean futures due on March 15 rose 1.70% to $9.8625 from the opening of $9.6975, while the dollar index added 0.16% to 89.70 from the opening of 89.55. 

Earlier US data showed the trade deficit widened to $53.1 billion in December from $50.4 billion, while Saint Louis Federal Reserve President James Bullard said in earlier remarks that the links between labor and inflation have broken down in recent years. 

Bullard, who doesn't have voting privileges in this year's FOMC meetings, warned from interpreting good labor news as leading to direct gains in inflation, noting that the relationship could be close to zero, which comes after the last US payrolls report showed the fastest wage growth in eight years, stoking expectations of higher inflation and faster Fed rate hikes. 

The US Department of Agriculture reported total inspection of 1.304 million tonnes of soybeans in the week ending last Sunday, up 15% from the previous week's 1.1 million tonnes, while down from 1.65 million in the same period of last year, with total inspected soybeans in the current marketing year amounting to 33.7 million tonnes, down from 40.5 tonnes in the same period of last year.

Productivity forecasts for total cultivated land fell by 100 thousand acres to 90.1 million acres, with the USDA expecting total soybean output at 470 million tonnes in the current agricultural year, up from 455 million in previous forecasts.