(Reuters) – U.S. soybean futures edged higher on Wednesday and extended gains into a fifth consecutive session, their longest rally in two months, as strong export demand underpinned gains.
Corn futures slipped for the second straight day as traders banked profits after gains of more than 5 percent in the prior two days, while wheat was little changed.
Chicago Board of Trade March soybeans rose 0.1 percent to $13.08 a bushel, having closed up 0.95 percent in the previous session when prices hit a high of $13.16-3/4 a bushel, the highest since December 26.
“The bulls are still talking about strong global demand, particularly for meal and forecasts for historically tight U.S. soybean carryout estimates,” said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia.
Soybeans have rallied more than 3 percent recently. Spot soybeans had risen for six straight sessions in mid-November.
Traders are eying the latest National Oilseed Processors Association’s monthly crush report later today, which is expected to show that the U.S. soybean crush was 163.9 million bushels in December, up 2.3 percent from November.
Earlier gains were stoked by the U.S. Department of Agriculture’s U.S. export inspections figures, which showed soybeans at 59.381 million bushels, beating forecasts for 45 million to 50 million.
While there is no concrete data on where the demand is coming from, a major portion of global soybean purchases are estimated to made by China, the world’s top buyer of the beans.
The beans were also drawing some support on concerns over hot, dry weather in Argentina, analysts said.
March corn fell 0.06 percent to $4.31-1/4 a bushel, having closed down 0.58 percent in the previous session.
Corn is continuing to come under pressure from profit-taking after the grain surged 5 percent on Jan. 10, when the USDA surprised the market by pegging production at a lower level than expected.
March wheat was little changed at $5.79 a bushel, having closed up 1.05 percent in the previous session when unconfirmed market talk that Brazil has purchased U.S. supplies underpinned gains.
