SINGAPORE: Chicago soybeans rose on Friday, with the market poised for its first weekly gain in 1-1/2 months, underpinned by strong demand and concerns that dry weather in top exporter Brazil will reduce yields.
heat and corn futures also gained ground. The most-active soybean contract on the Chicago Board of Trade (CBOT) has climbed nearly 1% so far this week, heading for its first weekly gain since early November.
Wheat has lost 2.3% this week and corn is down 1.2%.
Soybeans edged 0.1% higher to $13.15-3/4 a bushel by 0331 GMT on Friday, wheat added 0.2% to $6.17 a bushel and corn gained 0.1% to 4.79-3/4 a bushel.
The soybean market is being underpinned by strong demand for US cargoes as dryness threatens production in Brazil, although there are forecasts of some rains next week.
The US Department of Agriculture said in a daily reporting system that exporters sold 400,000 metric tons of Chicago soybeans to unknown destinations.
Soybeans down for second session on Brazil rain forecast
It was the seventh consecutive session in which the USDA announced a daily soybean sale.
Some much-needed showers will arrive in the northern third Brazil’s crop areas late next week, after hot, dry weather this week, forecaster Commodity Weather Group said.
Brazilian soy farmers, some of whom were forced to replant their beans due to adverse weather at the onset of the season, are facing a dearth of seeds on the market as suppliers have run out of the main cultivars, Marino Colpo, chief executive of seed company Boa Safra Sementes, told Reuters in an interview.
In Argentina, the government has reopened its grain export registry, according to a statement on Thursday, which is needed to allow companies from the key agricultural supplier to ship major crops like processed soybeans and corn.
A monthly National Oilseed Processors Association report is expected to show on Friday that the US soybean crush set a November record but slowed from an all-time high in October, analysts said.
Commodity funds were net buyers of CBOT wheat, soybean and soymeal futures contracts on Thursday, traders said. Funds were net sellers of soyoil and flat in corn, they said.
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