CHICAGO: US soybean futures firmed on Monday, hitting their highest level in more than two weeks on increasing concerns that rain in critical growing areas could delay plantings in the coming weeks, traders said.
Corn futures weakened, weighed down by some mild profit taking after prices hit a five-week high last week. But the weather outlook limited the declines.
"Weather models agree on above normal precip(itation) for the northern half of the US in the 10 to 15 day forecast, which could delay planting," Kevin Stockard, market analyst at CHS Hedging, said in a note to clients.
Expectations that the rain also would benefit developing wheat crops pressured the wheat market.
At 9:46 a.m. CDT (1446 GMT), Chicago Board of Trade May soybean futures were up 2 cents at $9.57-1/2 a bushel. Prices hit their highest level since March 31 and were on track for their third straight higher close.
"We are expecting some planting delays in the US, as over the next 15 days, there are forecasts of excessive rains in some areas," said Rajesh Singla, head of agriculture research at Societe Generale.
"The demand side looks good, Chinese economy is doing well and imports are rising."
CBOT May corn was down 1-3/4 cents at $3.69-1/4 a bushel.
Large speculators increased their short position in CBOT corn futures in the week to April 11, regulatory data released on Friday showed.
The Commodity Futures Trading Commission's weekly commitment of traders report also showed that noncommercial traders, a category including hedge funds, increased their short position in CBOT wheat and increased their net-short position in soybeans.
The net short position in grains lent some support to prices as funds often use any signs of weakness in the contracts to cover their bearish bets.
CBOT May soft red winter wheat was down 5-1/4 cents at $4.24-1/2 a bushel.
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