US soyabean futures climbed for a fourth straight session on Thursday to the highest in nearly two weeks on concerns that dry conditions in Argentina could reduce the soyabean crop and scale back soyameal supplies. Wheat futures rose on short-covering and a weakening US dollar, while corn drifted lower on technical and commercial selling.
Soyameal futures posted the strongest gains as traders monitored weather in Argentina, the world's top soya product supplier and where parts of the crop belt have seen a very dry start to the growing season. Some areas have received rain this week, but analysts say more is needed to prevent yield losses.
Chicago Board of Trade March soyabeans gained 3-1/4 cents to $9.72 a bushel by 12:02 p.m. CST (1802 GMT). March soyameal was up $3.10 a ton to $327.40, the highest since Dec. 14. The International Grains Council (IGC) raised its forecast for global wheat production in the 2017/18 season but said global wheat stocks in 2018/19 could decline for the first time in six years.
The market will get an update on export demand from weekly US export sales figures due on Friday. CBOT March wheat rose 2-1/2 cents to $4.24 a bushel.
Corn retreated as follow-through buying after Wednesday's two-week high faded, triggering technical selling. An increase in cash grain sales by farmers also fuelled commercial selling in futures as elevators and processors hedged their new physical long positions. CBOT March corn dipped 2-1/4 cents to $3.50-1/4 a bushel after briefly trading above its 50-day moving average, a technical level the market has struggled to breach for three months.
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