Soybeans up for second day on US rains, Brazil planting delays

SINGAPORE: Chicago soybean futures rose for a second session on Thursday as rains delayed the harvest in parts of the Midwest United States and dry weather slowed the pace of planting in Brazil, underpinning prices.

Wheat edged higher after dropping 1.3 percent on Wednesday when the market came under pressure from lack of demand for US cargoes.

The Chicago Board Of Trade (CBOT) most-active soybean contract added 0.6 percent to $9.63-3/4 a bushel by 0248 GMT, after firming 0.3 percent on Wednesday.

Wheat gained 0.3 percent to $4.43-1/2 a bushel and corn rose 0.6 percent to $3.50-1/4 a bushel.

Rains crossed parts of Iowa, Minnesota and Wisconsin with light showers crossing areas of Missouri, Illinois and Indiana.

"US soybean harvest is being delayed as rains seem to be an issue," said Phin Ziebell, agribusiness economist at National Australia Bank.

"There are some problems with Brazilian planting but that is a little bit speculative at this stage. It is not a demand side of the story this week as China is closed."

The soybean market is being underpinned by dry planting weather in Brazil.

The country's oilseeds industry group Abiove estimated the nation's soybean output at 108.5 million tonnes in the 2017/18 season, down from 113.8 million tonnes in the prior crop cycle.

Near-record US yields of soybean and corn crops are expected to keep a lid on prices.

Commodity brokerage INTL FCStone on Monday raised its estimate of the average US 2017 corn yield to 169.2 bushels per acre (bpa), from 166.9 bpa in its previous monthly report released Aug. 31.

The firm also raised its US soybean yield forecast, to 49.9 bpa from 49.8 previously.

In news, China's soybean imports from the United States are likely to be delayed by at least two weeks as suppliers struggle to find high-quality beans following crop damage from hurricanes, two trade sources with knowledge of the matter said.

Shipment delays could result in tight supplies at the end of October and early November, they warned, driving up soymeal and soyoil prices in the world's biggest importer of soybeans.

Wheat prices remained capped by export competition created by a record Russian harvest this year, a factor underscored by the latest Egyptian purchase of Russian wheat on Tuesday.

Commodity funds were net sellers of CBOT corn, wheat and soymeal futures contracts on Wednesday and net buyers of soybeans and soyoil, traders said.