SINGAPORE- Chicago soybean futures rose for a fifth consecutive session on Thursday, buoyed by concerns over dry weather in key exporting countries.
Soybeans gained more ground as a lack of rainfall in the world’s top producer Brazil raised supply concerns.
However, abundant global wheat supplies are expected to cap gains in Chicago futures.
“Weather issues are lifting prices,” said Ole Houe, director of advisory services at agriculture brokerage IKON Commodities in Sydney.
“…Chicago futures as well as Russia wheat are trading at 5-year high levels and that does not seem to compute well with the global supply and demand fundamentals even with the weather risk taken into account.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 added 0.3 percent to $6.09-1/2 a bushel, after closing up 2.5 percent on Wednesday when prices hit their highest since July 2015.
Soybeans were up 0.3 percent at $10.54 a bushel and corn Cv1 rose 0.2 percent to $3.89- 1/2 a bushel.
Dryness has raised concerns among traders about the prospects for wheat planting in the US Plains and the Black Sea region and for soybean planting in Brazil.
US agricultural exports to China hit $2.15 billion in August, the highest ever for the month, led by strong soybean exports.