CHICAGO: US soybeans notched a one-week high and headed for their third straight weekly increase on Friday amid growing export demand, extending gains after a closely watched analytical firm cut its view on South American production.
Rains were forecast next week in key growing regions of Argentina but dry weather over the past month is likely to reduce yields in the No. 3 world soy exporter.
Informa Economics on Friday lowered its forecast for soy production in Argentina and Brazil, the No. 2 soy exporter behind the United States.
Strong domestic US cash soybean markets also supported futures on ideas that fewer exports from South America will push more demand to the United States.
"We were a little firmer to start out on the tight cash number and then the Informa numbers drove it higher," said Karl Setzer, analyst at the MaxYield Cooperative in West Bend, Iowa.
"This is all demand-driven, on prospects we'll pick up some business," Setzer said.
Soybeans for March delivery added 1 percent, or 12-1/2 cents, at $12.29-1/2 per bushel at the Chicago Board of Trade, on pace to gain 0.8 percent for the week and about 2 percent for the year.
"Yesterday's soy exports weren't that big but the shipments was a big number, with China taking a majority of that. I would expect China to keep buying from us," said Bill Raffety, analyst at Penson Futures in New York.
Export shipments of US soybeans last week were above 1 million tonnes for the third week in a row, US Agriculture Department data showed on Thursday even as new sales of 368,400 tonnes fell below analyst estimates.
CBOT corn and wheat futures edged lower on Friday, pressured by a firmer dollar and moderating temperatures in wheat regions in Europe and the Black Sea region.
Russia's government said on its website that it sees no need for grain export restrictions in April, citing Russia's first deputy prime minister in charge of agriculture, Viktor Zubkov.
Talk of export restrictions in Russia, which has been selling its wheat at a record pace, have supported wheat and corn futures in recent weeks.
CBOT March corn fell 2-3/4 cents to $6.40-1/4 per bushel and CBOT March wheat eased 2-1/4 cents to $6.60-1/2. Each grain contract opened higher but quickly lost ground. Wheat was on track to gain 2 percent for the week while corn was on pace to end nearly unchanged.
The US Labor Department announced before the opening of the grains market that the US economy created jobs at the fastest rate in nine months in January while the unemployment rate eased to 8.3 percent, a near three-year low.
The jobs data propped up the dollar and weighed on some US commodities -- a higher greenback makes commodities priced in the US currency more expensive for foreign importers.
In Europe, bitterly cold weather has spread although no damage has yet been reported in top producers such as France and Germany.
"Provided the current cold spell in Europe does not persist for a more prolonged period, there is unlikely to be any major frost damage," Commerzbank said in a market note.
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