SINGAPORE: Chicago wheat futures rose for a second consecutive session on Monday to their highest in three weeks, as robust world demand and tightening supplies underpinned the market.
Soybeans rose for the first time in three sessions, while corn edged higher.
"Continued dry weather in Hard Red Winter wheat regions of the US is helping the mood," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "As are the high level of fertiliser prices."
The most-active wheat contract on the Chicago Board Of Trade (CBOT) gained 0.7% at $7.61 a bushel by 0349 GMT, near the session high of $7.62-1/4 a bushel, the highest since Oct 4. Wheat closed up 2% on Friday.
Soybeans were added 0.8% to $12.30-1/2 a bushel and corn rose 0.1% to $5.38-1/4 a bushel.
The wheat market is grappling with strong export demand, as stockpiles are expected to decline in major exporting zones this season.
In Australia, robust demand for wheat is quickly filling up shipping slots as importers book cargoes ahead of what is expected to be a second year of near-record output.
Corn is drawing support from talks of shifting US acres toward soybeans next year due to climbing fertilizer costs, while beneficial rain for planting in Brazil and upward revisions to US and European harvests curbed prices.
Large speculators cut their net long position in CBOT corn futures in the week to Oct. 19, regulatory data released on Friday showed.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and increased their net short position in soybeans.
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