CHICAGO: US wheat futures rose for a sixth straight session on Thursday on robust demand from domestic livestock feeders and exporters, which booked their biggest weekly sales in two years last week.
Corn prices climbed for the fifth time in six sessions, supported by concerns about tight old-crop supplies and a weaker US dollar, which makes the grain more competitive on the world market.
Soybeans fell for a third straight session on South American harvest pressure and concerns about slowing import demand from top buyer China.
"The demand for wheat has picked back up. We had good, solid wheat export numbers this morning. Corn and wheat are roughly on par in value so we're seeing more wheat feeding and we're seeing some wheat trickle into the ethanol market in the eastern corn belt," said Karl Setzer, an analyst with MaxYield Cooperative.
"There's a little bit of the risk premium coming out of the soybeans. There's not as much concern today as there was three months ago over depleting soy inventories," he said.
Chicago Board of Trade May-delivery wheat rose 10-3/4 cents to $7.20-3/4 per bushel by 12:59 a.m. CDT (1759 GMT), a 1.5 percent gain and the highest in 1-1/2 weeks. March futures expired at noon at $7.14-1/4, down 7 cents.
May corn added 4-1/2 cents, or 0.6 percent, to $7.14-3/4 a bushel, while May soybeans fell 15-1/2 cents, or 1.1 percent, to $14.31-1/2 per bushel. March corn expired 8-1/2 cents lower at $7.32-3/4 and March soy expired at $14.57-1/4, down 17-3/4 cents.
Weekly US Department of Agriculture data showed a net 888,500 tonnes of wheat export sales for the current marketing year and 198,500 tonnes for the next marketing year. Combined sales were the largest for a single week since February 2011.
Russian plans to buy wheat on the domestic market from August to October to replenish depleted stocks was also supportive as the move could limit some competition for US wheat from low-cost Russian grain.
The rally in wheat has taken it away from its lowest level in nine months, struck last week when prices fell on weak demand and improved conditions in the drought-hit US grain belt.
Demand for feed-grade wheat has firmed since then, following corn's rise above wheat after the USDA pegged corn end-of-season stocks for the 2012/13 year at a 17-year low.
SOYBEANS FALL
US soybean futures have come under pressure from a rapidly advancing South American harvest. Traders said Brazilian beans were now being offered at prices competitive enough to appeal to traders, despite a backlog of shipments.
Brazilian dock workers postponed a 24-hour nationwide strike planned for March 19 to allow more time to negotiate with the government. The move eased concerns about worsening shipping delays as Brazil aims to export its record-large crop.
Concern about slowing Chinese demand for soybean imports also weighed on the market.
"We're seeing better movement of beans coming out of Brazil and a sense of relief moving into the market," said Sterling Smith, a futures specialist with Citigroup.
"I could see bean exports going the way of corn, drying up rather dramatically and heading more to domestic use."
The US soybean crush has already been strong. The National Oilseed Processors Association's monthly crush data scheduled for release on Friday was expected to show should show the crush in February at 141.6 million bushels, according to a poll of seven analysts, which would be the largest for the month since 2010.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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