Friday, 01 February 2013 18:59
AMSTERDAM: US soybeans rose for a second straight session on Friday, on tight supplies and strong demand from China, setting the contract on track for a fourth consecutive week of gains.
Wheat rose 0.64 percent, recouping some of Thursday's losses on expectations of tight global supplies as the US crop suffers from a drought, while corn ticked higher.
Investors in the agricultural markets are closely watching the adverse weather in South America which has lifted prices the last few weeks. Overly wet conditions have stalled the early harvest in Brazil and persistently dry weather has threatened corn and soybean crops in neighbouring Argentina.
Erin FtizPatrick, Rabobank's analyst, said forecast rains will relieve the market in short term, but long-term weather outlook that foresees dry weather will keep the pressure on prices.
"Plus there are logistical issues in Brazil," she said. "I don't see any pull back in demand from China. That demand will be ...