CHICAGO: US soybean futures rose more than 2 percent on Tuesday, touching a six-month high on worries about excessive rains in Argentina crimping production prospects, analysts said.
Corn and wheat followed the firm trend, drawing additional support from a setback in the dollar.
As of 12:17 a.m. CST (1817 GMT), Chicago Board of Trade March soybeans were up 23-3/4 cents at $10.70 per bushel after reaching $10.75-1/2, the highest for a most-active contract since July 15.
CBOT March corn was up 6 cents at $3.64-1/2 a bushel and March wheat was up 7-1/4 cents at $4.33-1/4 a bushel.
Soybeans led the way up following heavy showers over the weekend in Argentina's crop belt.
"Soybeans are taking nearly all of their support from ongoing rains in Argentina and how they have likely reduced soybean production," Karl Setzer, an analyst with the MaxYield Cooperative in West Bend, Iowa, wrote in a daily note.
"Analysts in Argentina believe soybean production loss could total 10 percent, or roughly 147 million bushels. This is a worst case scenario though, with actual loss likely being less," Setzer added.
The rally triggered a round of farmer selling, pressuring cash soybean and corn values at the US Gulf Coast.
But neither the farmer sales nor a disappointing monthly crush report from the National Oilseed Processors Association had much effect on the soy rally.
NOPA said its members crushed 160.176 million bushels of soybeans in December, down from 160.752 million in November and below an average of trade expectations for 162.8 million.
Grains followed soybeans higher, with a weaker dollar and fund short-covering adding to bullish sentiment. A softer greenback tends to make US grains more attractive to holders of other currencies.
Investors sold the dollar after President-elect Donald Trump said the currency was too strong.
CBOT March corn set a 2-1/2 month high at $3.66-1/2 and March wheat reached $4.37-1/2 before paring gains.
"Wheat short-covering provides strength for the food grain on the weaker dollar and strength in the other markets," INTL FCStone chief commodities economist Arlan Suderman wrote in a note to clients.
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