SINGAPORE: Chicago wheat futures climbed nearly 2% on Monday, as concerns over supplies from top exporting Black Sea region supported prices.
Soybeans rose for a second straight session, with prices underpinned by concerns over dry weather curbing production in key South American suppliers.
The most-active wheat contract on the Chicago Board of Trade (CBOT) added 1.9% to $8.13 a bushel, as of 0340 GMT, after climbing to its highest since Jan. 26 at $8.14 a bushel earlier in the session.
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Soybeans rose 0.4% to 15.89-1/2 a bushel and corn added 0.8% to $6.56 a bushel.
Wheat futures are gaining ground on increased concerns that Russia may invade Ukraine and disrupt grain shipments from the Black Sea region, a key area for exports.
Washington urged all US citizens to leave the country within 48 hours.
For the soybean market, Safras & Mercado, an agribusiness consultancy, became the latest private forecaster in Brazil to cut its 2021/2022 crop estimate due to dry weather. The firm pegged the harvest at 127.1 million tonnes, down 5 million tonnes from January.
A run of US soybean export sales to China is contributing to the strength in prices.
Exporters reported sales of 108,000 tonnes of US soybeans for delivery to China; 30,000 tonnes of US soyoil to unknown destinations; and 128,000 tonnes of US corn to Japan, the US Department of Agriculture said.
Paraguay's soybean harvest could fall by as much as 50% to some 5 million tonnes in what would be its lowest level in the last decade due to a drought affecting the region, Paraguay's Agriculture and Livestock minister, Santiago Bertoni, told Reuters on Friday.
Large speculators cut their net long position in CBOT corn futures in the week ended Feb. 8, regulatory data released on Friday showed.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed non-commercial 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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