US soya futures gained 1.3 percent on Monday, rising for a third straight session on strong Chinese demand and a broad-based rally in commodities powered by a weakening dollar. Corn and wheat also strengthened on spillover strength from firm commodity markets, but gains were muted by large stockpiles of wheat and hopes of near-record corn production in the United States.
Concerns about wet weather in Brazil delaying plantings and rains in the US Midwest which are expected to slow the harvest of corn and soyabeans also supported the grain markets, although the weather is expected to turn dry around the weekend. US farmers have nearly wrapped up the soyabean harvest, which was 89 percent complete last week.
They have turned their attention to the corn harvest, which was only 54 percent finished - far behind the five-year average of 89 percent. The US Department of Agriculture will update its report on harvest progress later on Monday. "Soyabeans are continuing the momentum that they developed last week," said Toby Hassall, an analyst with CWA Global Markets in Sydney.
"We had some fairly strong demand indications last week. The NOPA crush data was I guess stronger than expected and we had very strong export sales numbers as well." Chicago Board of Trade January soyabeans gained 1.3 percent to $10.59 a bushel by 0415 GMT, after rallying 6.3 percent last week. The National Oilseed Processors Association (NOPA) said US soyabean crushing in October stood at 155.262 million bushels, compared with 107.379 million in September.
CBOT December wheat rose 1 percent to $5.65 a bushel, while corn for December delivery gained 0.6 percent to $3.93 a bushel. Analysts said corn and wheat markets are likely to be weighed down by strong supplies. "From the fundamental point of view wheat looks prone to downside this week. Corn could also fall." A global wheat supply glut was highlighted by Australia, which had 3.7 million tonnes of wheat in bulk storage at end-October as farmers began harvesting the 2009/10 crop, around double the stock levels of a year ago.