US wheat futures jumped nearly 2 percent on Friday and were on track for a second straight weekly advance as worries about dry weather in key global production regions fueled short-covering and speculative buying. Soyabeans advanced for the fifth time in six sessions on renewed Chinese buying of US export shipments, while corn edged upward on technical buying and spillover support from higher wheat.
Stressful weather in the US Plains wheat belt and forecasts for continued hot, dry conditions in key production areas have boosted prices by nearly 9 percent over the past two weeks. The US wheat concerns have added to worries about crops in parts of Canada, Australia and Russia - all major wheat exporters - fueling expectations of a tighter supply balance after record inventories had been forecast for this season.
Chicago Board of Trade July wheat was up 12-1/4 cents, or 2.3 percent, at $5.42-1/2 a bushel at 12:32 p.m. CDT (1732 GMT). The contract was on track for a 4.4 percent weekly gain. Prices on Thursday hit the highest level in 10 months. CBOT July corn was up 1/2 cent at $4.04-3/4 a bushel, holding near Thursday's 10-month high. The market was poised for a second straight weekly gain.
Soyabeans drew support from renewed demand from China following an easing of US-China trade tensions last weekend. China has given the green light to state-owned companies to begin buying US soyabeans again, although buyers are challenged by tight crush margins and high inventories. The US Department of Agriculture on Friday confirmed private sales of 312,000 tonnes of US soyabeans and 165,000 tonnes of optional-origin soyabeans to China via its daily reporting system. That followed a 264,000-tonne sale announced on Thursday to an unknown destination, broadly thought to be China.
Concerns that a truckers' protest in Brazil could impede exports from the top soya supplier added underlying support, along with news that Argentina was freezing its soyabean export tax reforms. CBOT July soyabeans were up 4 cents at $10.39-3/4 a bushel, on pace for a weekly gain of more than 4 percent.
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