Soy climbs on continued China buying; wheat up on global demand

CHICAGO: Chicago soybean futures rose on Tuesday, resuming a month-long climb after profit-taking a day earlier, as traders focused on continued US soy sales to China and strong demand for soybean meal, a feed ingredient, traders said.

Wheat gained on international demand while corn futures were narrowly mixed as strong US crop ratings and promising Midwest harvest weather capped rallies.

The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 2-1/4 cents to $10.24-3/4 per bushel by 11:09 a.m. (1709 GMT).

CBOT wheat added 7-1/4 cents to $5.62 a bushel while corn was up 1/4 cent at $3.70 per bushel.

Exporters sold 266,000 tonnes of US soybeans to China and 264,000 tonnes to unknown destinations, according to the US Department of Agriculture, marking the 13th consecutive business day of sales to China.

A slower soybean crush in Argentina is driving the US soymeal market higher, according to Terry Reilly, senior analyst with Futures International. The front four CBOT soymeal futures contracts set life-of-contract highs on Tuesday.

CBOT grains tumbled on Monday as a strengthening US dollar and broader losses in the US stock market triggered selling after recent peaks, including two-year highs for soybeans.

Traders said fundamentals were guiding the grain markets Tuesday more than macroeconomic forces.

"We'll keep a close eye on weather and harvest progress for sure, along with global economic conditions," said Jack Scoville, market analyst at the Price Futures Group.

Wheat futures rose as an international purchase tender from Egypt's main state wheat buyer served as a reminder of global demand. Results were expected later on Tuesday.
"Cash (wheat) prices in the Black Sea region are up four weeks in a row," said Reilly.

Corn futures were choppy as ideal Midwest harvest weather and improving crop ratings muted support from fresh export sales of US corn to China and unknown destinations.

The USDA on Monday rated 61% of the corn crop in "good-to-excellent" condition, up from 60% a week earlier, bucking analyst expectations for a decline.