SINGAPORE: Chicago soybean futures rose for a fifth consecutive session on Wednesday, to their highest since the middle of May with dry weather in South America reducing production and buoyed by a rally in soybean oil Linked to the Ukraine-Russian conflict.
Wheat and corn eased after strong gains in the last session, although losses were limited by escalating Russia-Ukraine tensions which could disrupt supplies from a key exporting region.
“It is mainly dry weather in Brazil and Argentina which is driving gains in soybean prices and its products across the board,” said one Singapore-based trader at a company which sells U.S. and Brazilian beans to China.
The-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.6% to $16.44-1/4 a bushel, as of 1200 GMT, having climbed earlier in the session to $16.50 a bushel, the highest since May.
Wheat lost 0.35% to $8.49-1/2 a bushel, after rallying more than 6% on Tuesday, while corn slid 0.6% to $6.66-1/4 a bushel, having added more than 3% in the last session.
The market is closely monitoring the weather in South American corn and soybean production areas, as well as drought conditions in the U.S. Plains wheat belt where the winter crop is due to break dormancy.
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