SINGAPORE/PARIS: Chicago soybean futures rose for a second session on Wednesday to their highest in almost a week, with prices underpinned by dry weather curbing Argentina's crop yields and excessive rains slowing Brazil's harvest.
Corn prices reached their highest since late August on strong demand for US shipments, while wheat rose for a second session as investors covered short positions ahead of US Department of Agriculture (USDA) crop forecasts on Thursday.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.2 percent to $9.88 a bushel at 1140 GMT, after touching its highest since Feb. 1 at $9.93-1/4 a bushel.
Corn added 0.3 percent to $3.64-1/2 a bushel, its highest since Aug. 22. Wheat gained 1.3 percent to $4.52 a bushel, having closed up 1.4 percent on Tuesday.
"Market participants are currently focusing much of their attention on the dry conditions in the US Midwest and Argentina," Commerzbank said in a note.
"Weather forecasts are predicting rain in Argentina this coming weekend and next week, though there are doubts as to whether this will bring sufficient relief to the drought-afflicted soybean plantations."
Argentina is the world's top exporter of soymeal and soyoil, and the No. 3 corn supplier.
Rains have delayed the soybean harvest in Brazil, which was likely to lead to further demand for US soybeans.
In corn, strong US exports continued to boost prices.
The US Department of Agriculture on Tuesday said private exporters sold a total of 225,000 tonnes of US corn in the last day, the government's third corn sales announcement in as many business days.
Commodity funds were net buyers of CBOT corn, soybean, wheat, soyoil and soymeal futures on Tuesday, traders said. Trade estimates of net fund buying in corn ranged from 14,000 to 21,000 contracts. The table below reflects the average of estimates from trade sources.
CME Group is talking to customers about potential changes to its biggest agricultural futures markets - corn and soybeans - to address concerns the contract prices are not accurately reflecting the underlying US cash grain markets, the company's clients told Reuters.
CME's review of the flagship CBOT Board of Trade futures contracts has not been previously reported. It marks the latest ripple effect from a glut of food commodities that has depressed prices, hurt US farmers' incomes and hobbled global grain traders.
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