US soyabean futures rose for the fourth day in a row on Tuesday, hitting their highest level since Nov. 8, following the soyaoil market's rally to a two-year high, traders said.
Corn and wheat futures also extended their winning streak as funds unwound bearish bets on hopes for increased exports following the recent "phase one" trade deal agreement between the United States and China.
"There is not a lot of real fresh news but the demand has been there from the funds to lift us higher," said Brian Hoops, president of US broker Midwest Market Solutions.
At 11:47 a.m. CST (1747 GMT), Chicago Board of Trade January soyabean futures were up 8 cents at $9.30 a bushel. CBOT January soyaoil gained 1.8% to 33.75 cents per lb, with the most-active contract hitting its highest on a continuous basis since Jan. 5, 2018.
US lawmakers have amended a government spending bill to extend a tax credit for the biodiesel industry through 2022 and retroactively to when it expired beginning in 2018, a move welcomed by an industry that has seen 10 plants shut since the credit lapsed.
CBOT March corn futures were 1-3/4 cents higher at $3.89-3/4 a bushel and CBOT March soft red winter wheat was up 4-1/2 cents at $5.54-1/4 a bushel. Both corn and wheat hit technical resistance at Monday's high. Traders said the grain markets were waiting for confirmation of fresh export deals before pushing higher.
The government wants to raise export taxes on wheat and corn to 15% from 12%, Argentina's Economy Minister Martin Guzman told a news conference. The bill, dubbed by the government the "Social Solidarity and Production Reactivation" project, would also raise the tariff cap on soyabean exports to 33% from 30%.
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