US corn futures advanced on Wednesday for an eighth straight session, notching a fresh six-week peak as dryness trimmed crop prospects in Argentina, the world's second largest corn exporter after the United States. Wheat also posted an eighth consecutive gain, hitting a seven-week high on short-covering and spillover support from corn.
Soyabeans turned lower, falling nearly 1 percent on profit-taking after rising to a six-week high in Tuesday's trading session. A rising dollar and tumbling equities helped create an unsettled trading atmosphere and limited buying interest in wheat, corn and soyabean futures. At 10:30 a.m. CST (1630 GMT), CBOT corn for March delivery was up 1-1/4 cents per bushel at $6.34-1/2, March wheat was up 2 at $6.46-3/4 and January delivery soyabeans were down 9 cents at $11.90-3/4.
Grains and soya each broke above key resistance on Tuesday at their 50-day moving averages, and those averages are now viewed as key support areas. But that rally also moved each market into overbought chart areas, leaving them vulnerable to profit-taking.
Traders and analysts said each market was being buffeted by end-of-year positioning and book-squaring, while major fundamental support to corn and some support to soyabeans was provided by harsh weather in South America. "The most concern in Argentina is for corn because it will be pollinating through the first two weeks of January, while bean yields will be determined in February," said Rich Nelson, director of research for Allendale Inc.
There is still time for rains to revive soyabean production but there is not much rain in the forecasts. Argentina is the world's second-largest exporter of corn after the United States, the third-largest soya exporter and the biggest exporter of soyaoil and soyameal. Dry weather is a mounting problem in the key South American producer, and weather in Brazil, the world's second-largest soya exporter, also is less than stellar.
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