At the same time, Wheat rose after a two-day drop attracting bargain buyers and traders looking to cover short positions, as investors closely watch the standoff between Russia and the West over Ukraine, which has stoked fears of a disruption in grain shipments from the Black Sea.
For its part, Corn futures gained as soybeans and wheat rallied, hitting a more than seven-month high in midday trading. The grain was also supported by the strength of the oil markets.
The most active soybean futures on the Chicago Stock Exchange (CBOT) closed the day with a rose 1.6% to US$540.79 a ton, in what was its fourth advance in a row.
CBOT corn rose 1.7% to $250.48 a tonne, while wheat gained 1.3% to $289.27 a tonne.
Although the rains since mid-January in Argentina have alleviated the drought, Analysts expect soybean and corn crop yields to decline in much of the country and also in southern Brazil.
Lower forecasts for South American crops have raised expectations of a surge in US exports, tempering concerns about reduced Chinese demand in recent months.
Private exporters reported the sale of 264,000 tons of soybeans to China, 141,514 tons to Mexico and 251,500 tons to unknown destinations, according to the United States Department of Agriculture.
Weather conditions in the United States are also starting to be a bigger factor in the market as farmers begin to approach the spring planting season, said Karl Setzer, commodity risk analyst at AgriVisor.
“We are starting to see more interest in long range models and the impact they can have on planting and potential acres”Setzer added in a note.
Soybean oil contracts also soared after Malaysian palm oil futures hit a new all-time high as top producer Indonesia capped exports.
Source From: Ambito
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