US soyabeans rose to a three-week high early on Thursday, led by increasing soyameal prices and forecasts for continued wet weather during the planting season in Argentina. Strong US export demand for soya products also propped up futures, which climbed for the third time in four sessions.
"You have an underlying bullish force," said Jason Britt, president of brokerage Central State Commodities in Kansas City. "We are not slowing exports, even though today's numbers were a little lower." US export sales of soyabeans, corn and wheat were the smallest in three weeks last week, with each missing trader expectations, US Agriculture Department data showed on Thursday. The slowing pace of exports pressured corn and wheat futures, with Chicago Board of Trade wheat edging lower for the first time in eight sessions and corn the first time in four sessions.
However, export sales of US soyameal were the highest in two months amid tight supplies in South America. Forecasts for continued wet weather in Argentina, the No 1 exporter of soyameal and soyaoil, also supported US soya prices. CBOT January soyabeans gained 3 cents to $14.49-3/4 per bushel as of 10:10 am CST (1610 GMT). Prices earlier hit resistance at the 200-day moving average of $14.60. Wet weather is a mounting issue in Argentina while overall satisfactory crop weather continues in Brazil, said Andy Karst, meteorologist for World Weather Inc.
"It's still too wet in Argentina and there are a couple more rounds of rain coming over the next week, so there won't be a whole lot more planting going on," he said. Drought conditions in the US hard red winter wheat belt spurred the longest rally in wheat futures since July before prices eased as traders took profits on Thursday. Benchmark CBOT December wheat fell 5-1/2 cents to $8.70-1/2 per bushel while CBOT December corn declined 3-3/4 cents to $7.57 per bushel.