SINGAPORE/PARIS: Chicago soybean and corn futures ticked higher on Tuesday, with both markets trading near multi-month highs, as dry weather in South America sparked concerns over supplies.
Wheat prices edged lower, extending losses in the previous session, on disappointing exports.
"We are in the weather market as far as South American crops are concerned," said one Singapore-based grains trader. "If it starts raining, prices will come down."
The Chicago Board of Trade's (CBOT) most-active soybean contract rose 0.6% to $13.79 a bushel, as of 1230 GMT, heading for a tenth straight session of gains.
Corn climbed 0.1% to $6.15-1/2 per bushel and was on track for a fifth consecutive session of gains.
Soybean and corn crop harvests are expected to be smaller in southern Brazil this season as fields are suffering from dryness, weather forecasters and consultancies said.
"Soybean prices are soaring amid fears of lower production in South America with flooding in northern Brazil and persistent water shortages from the southern Brazilian states to all of Argentina," French consultancy Agritel said in a note.
The US Department of Agriculture on Monday said 1,577,417 tonnes of US soybeans were inspected for export last week, which was within the range of trade estimates.
The agency also upwardly revised the prior week's soybean inspections total by more than 210,000 tonnes.
Wheat fell 0.8% to $7.97 a bushel with Agritel referring to disappointing export inspections and a lack of competitiveness, particularly with Russia, despite export taxes.
The USDA said 271,349 tonnes of US wheat was inspected for export last week, which was on the low-end of a range of trade estimates.
Large speculators raised their net long position in CBOT corn futures in the week to Dec. 21, regulatory data released on Monday 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 raised their net long position in soybeans.
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