US soyabean and corn futures firmed early on Friday, hitting four-week highs on concerns about rains slowing early soyabean harvest in Brazil and investor hopes of stimulus measures in China, traders said. Wheat futures also rose, following corn and soyabeans higher amid a mild round of short-covering. Traders also cited technical buying in wheat after European wheat hit contract lows.
"Grain futures are higher across the board this morning, with traders returning from the three-day weekend to find spirits improved by news of out China," Bryce Knorr, senior editor at Farm Futures Magazine, said in a research note. Chicago Board of Trade soyabean futures for March delivery were up 5 cents at $8.84 at 10:08 am CST (1608 GMT) while CBOT March corn gained 4-3/4 cents to $3.68 a bushel.
Corn hit its highest since December 22, while soyabeans peaked at their highest since December 23. Heavy rains are forecast in Brazil's center-west grain belt this week, meteorologists said, helping some newly cultivated areas to recover from last year's dry weather but raising concerns for farmers who are ready to harvest. The market has generally been anticipating bumper soyabean crops in South America, and the supply pressure has been exacerbated by moves from Argentina's new government to scale back export barriers. CBOT March wheat futures were up 3 cents at $4.76-3/4, with gains kept in check by export concerns. Sales of Argentine wheat to the United States was cited as a key factor that pushed down European futures to contract lows on Monday.
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