PARIS/BEIJING: Chicago soybeans and corn extended a rally on Wednesday to new multi-month peaks as dry weather in some South American growing belts stoked supply concerns.
US and European wheat futures added further gains to reach two-week highs, tracking corn and soy while also drawing their own support from brisk import demand and supply risks.
Strength in share and oil prices, as investor fears about the impact of the Omicron coronavirus variant abated, and chart-based moves also boosted grain markets in light pre-holiday trading.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.8% at $13.22-3/4 per bushel by 1150 GMT, after earlier reaching a new high since Aug. 30 at $13.25-3/4.
CBOT corn was up 0.5% at $6.01 a bushel, reaching the $6 level for the first time since July 1.
Drought in southern Brazil and developing dryness in parts of Argentina have tempered earlier optimism about South American harvest prospects.
"The 15-day weather forecast does not point to any improvement," consultancy Agritel said, referring to those crop regions.
Rising crude oil prices were also reinforcing margins for biofuel, which is made with vegetable oils such as soyoil and grains including corn.
Soybeans, wheat and corn drift as weather threats are assessed
February rapeseed on Euronext also extended a rally to hit a new record for the market at 754.75 euros ($853.09) a tonne, with concerns over soybean crops in South America and palm oil output in Malaysia adding to support from tight rapeseed availability in Europe.
CBOT wheat was up 0.7% at $8.04-1/4 a bushel, while Euronext March wheat was 1.1% higher at 288.00 euros a tonne.
Tuesday's purchase of 320,000 tonnes of milling wheat by Turkey's state grain board and news that Iran's Government Trading Corporation has issued another wheat import tender underscored strong international demand.
Adverse weather for some US winter wheat and military tensions between major exporting countries Russia and Ukraine were also encouraging the firm trend in wheat, traders said.