By Gus Trompiz and Gavin Maguire
PARIS/SINGAPORE, Feb 2 (Reuters) – Chicago soybean futures rose for a seventh straight session on Wednesday as the breaking of chart levels fuelled a rally sparked by reduced forecasts for South American harvests.
Corn edged up as it drew support from soybeans while wheat also ticked higher following losses earlier this week.
The most-active soybean contract Sv1 on the Chicago Board Of Trade (CBOT) was up 1.5% at $15.51-1/2 per bushel by 1247 GMT.
It earlier rose to $15.60-1/4, its highest level since June 10 after breaching the psychological $15.50 level.
Within the soy complex, CBOT soymeal SMv1 climbed to its highest level since May while soyoil futures BOcv1 were near a 7-1/2 month peak.
Downward revisions by analysts to forecasts for upcoming South American soy harvests, following a drought in some regions, have raised the prospect of additional demand for U.S. supplies.
That has in turn created concern that U.S. farmers will need to plant more of the crop this spring to replenish supplies.
“Soybeans … are showing exceptional firmness due to lower production estimates in Brazil,” consultancy Agritel said in a note. “This is dragging corn in its wake in Chicago.”
Tuesday’s announcement of a sale of 132,000 tonnes of U.S. soybeans to China also supported the market, although traders expect this week’s Lunar New Year holiday in China and other Asian countries to cap immediate demand.
CBOT corn Cv1 added 0.4% to $6.37-1/2 per bushel, holding near Monday’s seven-month peak.
CBOT wheat Wv1 was up 0.2% at $7.70-3/4, consolidating after a steep fall at the start of the week.
Wheat prices have been pressured by waning fears of an invasion of Ukraine by Russia, and signs that large exports of Russian and Ukrainian grain are continuing.
However, a purchase of 100,000 tonnes of soft wheat by Tunisia in a tender suggested the recent pullback in prices had stirred some fresh demand. GRA/TEND
Prices at 1247 GMT
Last
Change
Pct Move
End 2021
Ytd Pct Move
CBOT wheat Wv1
770.75
1.75
0.23
770.75
0.00
CBOT corn Cv1
637.50
2.75
0.43
593.25
7.46
CBOT soy Sv1
1551.50
23.00
1.50
1339.25
15.85
Paris wheat BL2c1
267.75
-1.50
-0.56
278.50
-3.86
Paris maize EMAc1
252.00
-1.00
-0.40
226.00
11.50
Paris rape COMc1
724.50
3.25
0.45
754.00
-3.91
WTI crude oil CLc1
88.33
0.13
0.15
75.21
17.44
Euro/dlr EUR=
1.13
0.00
0.43
1.1368
-0.44
Most active contracts – Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
U.S. soybeans, soy oil & soy meal futures prices since 2012https://tmsnrt.rs/3ugpvCT
(Reporting By Gavin Maguire; Editing by Rashmi Aich, Sherry Jacob-Phillips and Mark Porter)
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