Soybeans steady on Chinese demand, dry S. American crop belts

PARIS/SINGAPORE: Chicago soybean futures inched up on Monday, holding near a more than four-year high hit last week, as strong demand from top buyer China and dry weather in South America underpinned prices.

The same factors supported corn, which also ticked up. Wheat eased as rain in dry US growing belts and the arrival of a big Australian crop tempered support from importer demand.

Traders were awaiting weekly data on US crop conditions and investor positions in commodity markets, as well as a monthly soybean crushing estimate, for fresh direction.

Better than expected Chinese factory data and favourable results for another COVID-19 vaccine candidate buoyed investor sentiment, shifting the focus away from the continuing epidemic in the United States and Europe.

The most-active soybean contract on the Chicago Board of Trade was up 0.4% at $11.52-3/4 a bushel, as of 0229 GMT, rising for a second session and near a highest since June 2016 struck on Nov. 11.

CBOT corn added 0.5% to $4.12-1/2 a bushel.

"China continues to buy beans. Brazil is seeing record sales of crop yet to be harvested," said Ole Houe, director of advisory services at agriculture brokerage IKON Commodities in Sydney.

Brazilian farmers have pre-sold an unprecedented amount of their new soybean crop amid the rally in Chicago, consultancy Datagro said.

While widespread rains are forecast this week, recent drought has already hampered the planting season and AgRural, another consultancy, has ruled out a bumper soy crop in Brazil's top grain growing state.

A ramp-up in Chinese imports and tightening US supply have put greater onus on Brazil to produce a large crop in the coming months.

CBOT wheat was down 0.7% at $5.89-1/2 a bushel, but held above Friday's one-month low.

"Wheat futures slid lower as favourable weather was seen in the US Plains over the weekend," brokerage Allendale said.