SINGAPORE: US wheat extended gains into a second session on Friday, with the market poised for its first weekly climb after six weeks of heavy losses, boosted by expectations of a rebound in demand for US supplies.
Soybean prices rose for a second day, tracking a strong rally in Malaysian palm oil futures, although gains were capped by forecasts of record production in South America. Corn edged higher.
Chicago Board of Trade March wheat has risen more than 5 percent this week, its first weekly gain in seven weeks. March soybeans are up 2.6 percent, their first weekly climb in a month.
March corn has advanced 4.8 percent this week in its biggest weekly gain since late October.
Wheat rose 0.8 percent to $5.29-3/4 a bushel by 0259 GMT on Friday, soybeans added 0.5 percent to $9.86 a bushel and corn gained 0.7 percent to $3.88 a bushel.
"Exports steering away from a very weak path are good news but are more support than a reason for an extended rally," Tobin Gorey, director of agricultural strategy for Commonwealth Bank of Australia, said in a note to clients.
"The rally might be partly relief - like finally stepping off a darkened staircase to the floor."
Chicago wheat futures lost almost 15 percent in January amid lack of demand for US supplies.
Egypt's state grain buyer could soon announce tenders to buy wheat of US origin only, in order to make use of a $100 million credit line made available to it by the United States.
Soybeans rose as surging Malaysian palm oil futures lifted global vegetable oils markets on speculation the world's top producer Indonesia will increase bio diesel subsidies, making blending profitable.
Still, forecasts of record production in South America are likely to weigh on the market.
Argentina will produce a record soybean crop of 57 million tonnes in the 2014-15 season, the Buenos Aires Grains Exchange said on Thursday in its first harvest forecast for this crop year.
US soybean export sales in the week ended Jan. 29 came in at the high-end of market estimates but were the second-lowest since October, indicating a seasonal slowdown.
Commodity funds bought a net 7,000 CBOT wheat contracts on Thursday, trade sources said. The funds bought 5,000 soybean contracts, 5,000 for soyoil and were net even in corn.
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