Chicago Board of Trade wheat futures rose 1.2 percent early on Monday to their highest since mid-February, supported by concerns about dry conditions hampering crop development in the US Plains, traders said. Falling production in Australia and strong export data also lent strength to the wheat market, which was on track to close in positive territory for the fourth time in five sessions.
Strong export demand also supported soyabean futures despite huge crop expectations for key South American supplies, while corn faltered on technical selling. Corn also faced pressure from the discovery of a bird flu strain in a chicken breeder flock on a Tennessee farm.
Concerns about early emergence of US winter wheat leaving the crop vulnerable to a cold snap in the next few weeks also were bullish.
At 10:37 am CST (1637 GMT), CBOT May soft red winter wheat futures were up 5 cents at $4.58-1/2 a bushel.
Australia's 2017/18 wheat crop is expected to fall 32 percent from the previous season, the country's chief commodity forecaster said, as seasonal conditions turn drier. Farmers in the world's No. 4 exporter will harvest 23.98 million tonnes of wheat next season, the Australian Bureau of Agriculture, Resource Economics and Rural Sciences forecast.
The US Agriculture Department on Monday reported that weekly export inspections of wheat totalled 535,920 tonnes, near the high end of market forecasts.
Soyabean export inspections were a bigger-than-expected 921,779 tonnes.
Wet weather in Brazil slowed transport of supplies from an expected record harvest in the world's biggest exporter of the oilseed, keeping overseas buyers focused on the US soya market.
CBOT May soyabeans were 1-1/2 cents higher at $10.39 a bushel.
But demand was expected to shift to South America as the weather improves, limiting soya market strength on Monday.
CBOT May corn was down 3-1/4 cents at $3.77-1/2 a bushel. Corn firmed early but faltered near Friday's high.
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