(Reuters) – U.S. soybean prices rose on Friday with the market poised for a seventh consecutive week of gains, the longest such rally in seven years, boosted by production losses in key exporter Argentina.
Corn is up for a third week on support from lower supplies in Brazil, while wheat edged lower after notching up its biggest daily rise in more than a month in the last session.
The Chicago Board of Trade most-active soybean contract
is up 0.8 percent this week, its seventh consecutive weekly rise. Soybeans last rallied for seven straight weeks in June 2009.
Corn is up 3.6 percent in its third consecutive weekly rise and wheat has gained 2.6 percent, rebounding from losses of 1.5 percent last week.
“The Buenos Aires Grain Exchange has this week maintained its 56 million tonnes forecast, but plenty of market chatter is still circulating about additional cuts to Argentine output,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
“We think the beans rally might have more in it yet.”
Argentina’s 2015/2016 soybean harvest is going well, the Buenos Aires Grain Exchange said on Thursday, after drier weather in recent weeks following severe rains last month which paralysed the process and sent prices climbing on fears of a shortage.
Argentina’s soy-producing regions were drenched by heavy rains in April, just ahead of the harvest, raising questions about the size and quality of the crop.
Wheat has drawn support this week on concerns over potential adverse weather in the U.S.
Still, the International Grains Council raised its forecast for world wheat production in 2016/17 to 722 million tonnes, up from a previous estimate of 717 million but below the prior season’s record 736 million.
Brazil will export less corn than expected this year as the supply crisis in the world’s No. 2 exporter deepens, giving rival producers a rare chance to boost sales abroad amid a global glut weighing on world prices, a Reuters poll showed.
Commodity funds were net buyers of CBOT corn and wheat contracts on Thursday and net sellers of soybeans, traders said.
Trader estimates of net fund buying in corn ranged from 6,000 to 18,000 contracts. Estimates of net fund buying in wheat ranged from 5,000 to 9,000 contracts. Estimates of net fund selling in soybeans ranged from 4,000 to 8,000 contracts.
