(Reuters) – U.S. wheat futures rose on Monday, extending gains into a second straight session for the first time in a month, as production concerns in other key exporters buoyed expectations for increased demand.
Soybeans fell for the first time in three sessions as traders banked profits, while corn tracked wheat higher.
Chicago Board of Trade March wheat rose 0.61 percent to $6.61 a bushel, having closed up 0.34 percent in the previous session.
Wheat futures last rose for two consecutive sessions on Oct. 22 and 23.
“The gains are being driven by the rising competitiveness of U.S. wheat,” said Vanessa Tan, investment analyst at Phillip Futures Singapore.
“Previously you have seen tenders bypassing U.S. wheat, but now with Australia for one seeing unfavorable weather conditions, this could shift demand to the U.S.”
Unseasonal rains in Western Australia and frost on the country’s east coast have hit wheat crops in the world’s No.2 exporter of the grain, dragging down quality and reducing harvests.
Elsewhere, the Rosario Grains Exchange last week forecast Argentina’s wheat crop at 9.1 million tonnes in its first estimate of the season, well below the 11-million-tonne view of the U.S. Department of Agriculture.
January soybeans fell 0.23 percent to $13.16-1/2 a bushel, having closed up 2.2 percent on Friday. Soybeans had drawn support from strong export demand, analysts said.
The USDA confirmed on Friday that private sales of 115,000 tonnes of U.S. soybeans to China.
The USDA in its weekly report on Thursday said soybean sales last week were well above expectations at nearly 1.4 million tonnes.
December corn rose 0.18 percent to $4.23 a bushel, having closed down 0.2 percent the session before.
