Soybeans at 2-week high as dry weather slows planting in Brazil

SINGAPORE: Chicago soybeans were largely unchanged after climbing to a two-week high on Monday, underpinned by concerns about dry weather bringing planting delays in the world's biggest exporter, Brazil.

Corn rose for a third consecutive session as rains threatened the US harvest, while wheat extended Friday's gains.

The Chicago Board Of Trade most-active soybean contract was up quarter of a cent, or 0.03 percent, at $9.72-1/2 a bushel by 0223 GMT, after climbing to its highest since Sept. 25 at $9.77 a bushel.

Corn added 0.3 percent, or 1 cent, to $3.51 a bushel, having gained 0.1 percent in the previous session. Wheat was up 0.2 percent, or three quarter of a cent, to $4.44-1/4 a bushel, having closed up 0.6 percent on Friday.

"Weather forecasters continue to expect soybean regions in Brazil's Mato Grosso state to see no material gains in soil moisture for another week or so," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

"The market does seem to be adding a little to prices to reflect concern about this issue. And perhaps for the developing La Nina condition, too, that would restrict Brazilian rainfall."

Soybean planting in Brazil was 5.6 percent complete as of Friday, consultancy Safras & Mercado said, down from 10.4 percent at this time last year, as dry weather for most of September delayed seeding.

Brazil's soybean output in the 2017/18 crop season is expected to reach 109.98 million tonnes, according to an average of 10 estimates compiled by Reuters on Friday.

The country produced 114.08 million tonnes of soybeans in the previous season (2016/17), according to agricultural statistics agency Conab, in an area of 33.91 million hectares.

The market's focus is now turning to the next US Department of Agriculture (USDA) monthly supply-demand reports, due on Oct. 12.

Brokerage INTL FCStone and research firm Informa Economics last week raised their US yield estimates for both crops.

Large speculators increased their net short position in CBOT corn futures in the week to Oct. 3, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and trimmed their net short position in soybeans.