Soybeans hold near 3-week high on Chinese demand

PARIS: Chicago soybean futures were little changed on Thursday, holding near a three-week high as fresh demand from China supported prices while traders awaited weekly US export sales data.

Wheat rose for a second session as hot weather forecast in US and Russian growing belts kept attention on harvest risks. Corn edged higher.

The US Department of Agriculture (USDA) on Wednesday reported sales of 186,000 tonnes of US soybeans to unknown destinations, which analysts said likely meant China.

This came after US soybean sales for China confirmed earlier in the week easing concerns that political tensions between Washington and Beijing would disrupt agricultural trade.

The most-active soybean contract on the Chicago Board Of Trade was down a quarter of a cent at $8.57-1/4 a bushel by 1017 GMT, after earlier equalling Wednesday's three-week high of $8.58.

"Every favourable indication on Chinese demand is helping soybean prices," Sebastien Poncelet of consultancy Agritel said.

Recent weakness in the dollar has reinforced export optimism, while gains in palm oil have also supported soybeans and other oilseed markets, analysts said.

A steadier dollar and weaker crude oil and palm oil on Thursday encouraged soybeans to consolidate.

The USDA will report weekly US grain export sales at 1230 GMT.

US soybean and corn prices were being capped by broadly favourable growing conditions in the Midwest crop belt.

CBOT corn added 0.5% to $3.25-3/4 a bushel.

A large short position held by investors was underpinning corn while traders assessed Midwest growing conditions and recovering ethanol demand as lockdowns to counter a coronavirus epidemic are eased. Wheat rose 1.1% to $5.17-3/4 a bushel.

High temperatures expected in the southern United States in the coming week and hot weather forecast in southern Russia later in June were supporting prices, despite rain relief for dry western European wheat belts.

"The weather market is still open in wheat," Poncelet said.