CHICAGO: US soyabean futures firmed on Monday in a rebound from sharp declines last week as continued strong US exports and pockets of dryness in South American production areas stoked concerns about tightening supplies of the oilseed. Corn and wheat rose in tandem with rising soyabeans, supported by solid global demand for grain.
Investors also took positions ahead of a monthly US Department of Agriculture (USDA) supply-and-demand report due on Thursday which will offer the agency's latest view on South American crops.
"The trade is going to keep a weather premium built into this market until it sees Thursday's report," said Mike Zuzolo, president of Global Commodity Solutions.
"A strong export market always draws attention back to the weather. With Argentina and some key areas of Brazil still missing a lot of precipitation, you've got to wonder if supplies are falling faster than demand."
Chicago Board of Trade January soyabeans were up 1-1/2 cents at $11.64-1/2 a bushel by 12:05 p.m. CST (1805 GMT). March corn was up 3-1/2 cents at $4.24 a bushel, while CBOT March wheat climbed 3-1/2 cents to $5.79 a bushel after touching a two-month low in overnight trading.
Weekend rains in northern and central Brazil brought relief to parched crops, but a sizable portion of the country's farm belt remains in a moisture deficit, meteorologists said. Argentina is also dry in key production areas.
Tightening soyabean stocks and robust demand from top importer China supported soyabean prices. Customs data showed China imported 9.59 million tonnes of mostly US soyabeans in November, up from 8.7 million the prior month.
The USDA on Monday said 2.297 million tonnes of US soyabeans were inspected for export last week, above trade expectations for 1.5 to 2.2 million.
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