US soyabean futures rose on Wednesday amid lingering concerns about risks from unfavourable dryness in Argentina, a day after prices neared a one-month low on forecasts for beneficial rains. Corn and wheat futures weakened under pressure from large supplies. Markets were also consolidating ahead of the Christmas weekend.
Traders kept an eye on weather conditions in Argentina, a major exporter, after dryness raised concerns about crop plantings and boosted soya prices earlier this month. Expectations for improved rains there coincide with forecasts for a record harvest in fellow exporter Brazil.
"Despite rain forecasts in Argentina, the outlook there in January is still looking rather dry at a critical time for soyabean crop development in South America," said Matt Ammermann, commodity risk manager and vice president for Eastern Europe and the Black Sea Region for broker INTL FCStone.
Crop losses in Argentina or Brazil could increase demand for US soyabeans, as the countries compete for sales on the global export market. On Wednesday, the US Department of Agriculture said exporters had struck deals to sell 132,000 tonnes of US soyabeans to China, the world's top soyabean importer. US exports will likely stay at a "brisk level" due to strong demand from China, Ammermann said.
Most active Chicago Board of Trade March soyabeans rose 1-3/4 cents to $10.17-1/2 a bushel at 11:38 am CST (1738 GMT) after hitting a low since November 21 on Tuesday. Most active March wheat lost 1/2 cent to $4.02-3/4 a bushel. That was near two-week lows approached on Tuesday but holding above the closely watched $4 level. Most active March corn fell 2-3/4 cents to $3.47-1/2 a bushel. US wheat prices remain burdened by huge global inventories and exporters face stiff competition from other countries, traders said.
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