Soybeans Edge Higher On Strong Demand And Weather Concerns
Chicago soybean futures rose on Wednesday, climbing towards the previous session's more than four-year peak, boosted by dry weather in South America and robust Chinese demand.
U.S. wheat prices also edged higher while corn futures were little changed.
"South America’s crop weather continues to bolster prices," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
The most active soybean contract on the Chicago Board of Trade was up 0.4% at $11.74-1/2 a bushel by 1129 GMT after peaking at $11.78-1/4 on Tuesday, its highest since June 2016.
Strong demand from China has also helped to fuel the run-up in soybean prices.
"With continued demand from China, driven by the sustained growth of pig herds there, prices will increase further," said ABN AMRO senior economist Casper Burgering.
China's Pig Herd
China's pig herd grew had grown 26.9% year on year in October and its sow herd rose by 31.5%, extending strong rebounds in the previous few months after large numbers of pigs were killed by African swine fever.
CBOT's most active wheat contract was up 0.6% at $5.98-3/4 a bushel while March milling wheat on Paris-based Euronext fell 0.1% to 209 euros a tonne.
A weaker dollar and relatively low U.S. stocks helped to underpin Chicago prices.
News was awaited from Pakistan's tender for 400,000 tonnes of wheat.
The most active CBOT corn contract was unchanged at $4.26-3/4 a bushel, with concern over weak demand for corn-derived ethanol helping to keep a lid on prices.
"Chinese demand for corn currently remains strong due to the high demand for animal feed and damaged supplies in China after storms and drought. However, ethanol-from-corn sales in Brazil and the U.S. remains a concern," Burgering said.