By PJ Huffstutter
CHICAGO, US, Jan 28 (Reuters) – Chicago soybean futures rose on Friday, hitting highs not seen since last summer, as the market anticipates output losses from drought in South America, which could reduce world supply for export.
* Wheat rose after a two-day slump, attracting bargain buyers and traders looking to cover short positions, as investors closely monitor the standoff between Russia and the West over Ukraine, which has stoked fears of a break in markets. grain shipments from the Black Sea.
* Corn futures gained as soybeans and wheat rallied, hitting a more than seven-month high in midday trading. The grain was also supported by the strength of the oil markets.
* The most active Chicago Stock Exchange (CBOT) soybean futures closed the day up 21.75 cents at $14.70 a bushel. Earlier in the session, they hit $14.79 a bushel, the highest price since June 15.
* CBOT corn rose 10.75 cents to $6.36 a bushel, while wheat gained 9.25 cents to $7.8625 a bushel.
* Although rains since mid-January in Argentina have eased the drought, analysts expect soybean and corn crop yields to decline in much of Argentina and also in southern Brazil.
* Lower forecasts for South American crops have raised expectations of a surge in US exports, tempering concerns about reduced Chinese demand in recent months.
* Private exporters reported selling 264,000 tons of soybeans to China, 141,514 tons to Mexico and 251,500 tons to unknown destinations, according to the US Department of Agriculture.
* Weather conditions in the United States are also beginning to be a more important factor in the market as farmers begin to approach the spring planting season, said Karl Setzer, commodity risk analyst at AgriVisor.
* “We are starting to see more interest in long-range models and the impact they can have on planting and potential acres,” Setzer said in a note.
* Soybean oil contracts also soared after Malaysian palm oil futures hit a new all-time high as top producer Indonesia capped exports. (Additional reporting by Gus Trompiz in Paris, Gavin Maguire in Singapore and Mark Weinraub in Chicago Edited in Spanish by Javier López de Lérida)
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