PARIS/SINGAPORE: US soybean futures rose on Friday to a six-week high, buoyed by strong export demand and weather risks to planting in South America.
Wheat was firm to reach a new one-month high, supported by investor short-covering. Corn also edged up, tracking soybeans and wheat, but was facing its second weekly loss as harvesting of an expected bumper US crop gathers pace.
The Chicago Board of Trade (CBOT) most-active soybean contract was up 0.9 percent at $9.79-1/4 a bushel by 1141 GMT, close to a session high of $9.79-1/2 - a level last reached on Aug. 10.
The soybean contract was on track for a fifth consecutive week of gains.
Wheat was up 0.4 percent at $4.54-1/2, after earlier setting a new one-month high at $4.55, to head for a second week of gains. Corn added 0.6 percent to $3.52-1/4.
Dry weather in Brazil and soggy conditions in Argentina have raised concern about upcoming soybean planting in the two exporting countries, shifting attention away from large global supplies and the start of the US harvest.
"The oilseed markets continue to have an eye on Brazil's dry soybean regions," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
"Weather forecasters expect some rainfall to move through parts of these regions next week though their confidence in the likely distribution is low."
There was support for soybeans stemming from a larger-than-expected weekly export sales tally. The USDA reported export sales of US soybeans in the latest week at more than 2.3 million tonnes, topping a range of trade estimates for 1.2 million to 1.5 million.
Through its daily reporting system, the USDA said private exporters sold 132,000 tonnes of US soybeans to China.
Corn, however, was being capped by smaller than expected weekly exports as well as the advancing US harvest that is expected to show strong yields.
"The export pace is progressing slowly, while corn prices are still displayed near the lowest levels of the year on the American market," consultancy Agritel said in a note.
The wheat market has been underpinned by short-covering and weather issues in southern hemisphere exporters Australia and Argentina.
Commodity funds hold a large net short position in CBOT wheat futures, leaving the market vulnerable to bouts of short-covering.
Excessive rains in Argentina have threatened yield prospects, while Australia's crop has suffered from persistent dryness in the east.
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