SINGAPORE: Chicago soybean futures were flat on Thursday, after climbing earlier in the session to a three-week high as prices found support in strong demand from US oilseed processors and a drought in rival exporter Brazil.

Wheat gained ground amid tight supplies in India, a leading wheat consumer, while corn eased.

“The soybean market is taking into account US demand and dry weather in Brazil,” said one Singapore-based oilseed trader.

“But China’s demand will be key to prices going forward.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) held its ground at $13.10 a bushel, as of 0325 GMT, after hitting its highest since Sept. 27 at $13.15 a bushel earlier on Thursday.

Wheat added 0.7% to $5.84 a bushel, while corn lost 0.1% to $4.91-3/4 a bushel.

Soybean futures are being supported by strong US local demand and on news that US exporters had sold 132,000 metric tons of soybeans to China for the 2023-2024 marketing year.

A severe drought in Brazil, the world’s biggest soybean exporter, is providing further support to prices.

Soybeans climb to 3-week high on strong US demand; wheat up 1.3%

The Amazon River fell to its lowest level in over a century on Monday at the heart of the Brazilian rainforest as a record drought upends the lives of hundreds of thousands of people and damages the jungle ecosystem.

The drought in the Amazon is forcing Brazilian grain exporters to divert a small number of export cargoes to southern port terminals instead of northern ports, grain exporters group Anec said on Wednesday.

For wheat, tight supplies in India are supporting prices. India raised the price at which it buys locally produced new-season wheat by 7% to encourage farmers to expand the growing area as New Delhi tries to increase production.

In news, Russia’s EPT grain export company has entered into a contract with the China Chengtong state corporation to supply 70 million tons of Russian grains, legumes and oilseeds to China, EPT said on Wednesday.

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