SINGAPORE: Chicago soybean futures rose 0.6 percent on Monday, gaining for a 3rd straight session to a seven-month high as strong exports and shrinking South American supplies supported the market.
Corn and wheat were also up around half a percent in early Asian trade after a US Department of Agriculture (USDA) report on Thursday showed strong demand for US grain supplies.
FUNDAMENTALS
* US soybean prices have been climbing amid a steady stream of downwardly revised South American crop forecasts and expectations for more demand for US soy in the export market.
* The USDA data released on Thursday showed weekly US soybean export sales topped 1 million tonnes, above trade expectations.
* Corn exports also topped trade expectations. The largest weekly corn sales in 5-1/2 months included 394,000 tonnes to China, its biggest purchase since October.
* Wheat has garnered support on news that top importer Egypt bought 115,000 tonnes of US soft red winter wheat.
* The USDA will update its monthly world supply and demand estimates and ending stocks forecasts on Tuesday.
* Traders polled by Reuters expect the USDA to peg Brazil's soybean production at 67.114 million tonnes, down from 68.5 million in March. Argentine production was seen dropping to 45.193 million from 46.5 million.
* Large speculators increased their net long position on Chicago Board of Trade soybean futures and options for a ninth consecutive week, reaching another record high in the wake of a government report on plantings and stockpiles.
* Farmers have been planting corn at the fastest pace ever in the US Midwestern grain belt this spring, raising the danger that some of the crop could be damaged if forecasts for cold weather in parts of the region this week come to pass.
* Still, meteorologists said the blast of cold weather was expected to largely sweep through areas where hardly any corn had been planted or where the crop has not developed enough to be hurt.
MARKET NEWS
* Crude oil futures fell more than $1 in early Asian trade on Monday, reversing most of the gains made on Thursday. Front-month Brent crude was down $1.17 a barrel to $122.26 a barrel by 2240 GMT, after slipping as low as $122.17. It had settled at $123.43 per barrel, up $1.09, on Thursday.
* Asian shares fell on Monday as a sharp slowdown in US jobs growth raised concerns about the strength of the world's largest economy, making investors cautious ahead of more US data and earnings as well as figures from China due this week.