WINNIPEG, Manitoba, Nov 29 (Reuters) – Soybeans rose on Friday on strong export demand and higher soymeal prices, and Chicago wheat gained on concerns about Argentina’s wheat crop.
Corn slipped as U.S. markets reopened for a shortened session after the Thanksgiving holiday.
Demand for soybeans from overseas markets, especially from top importer China, has rallied the oilseed this week.
“Regardless of South American (soybean) supplies building, the right-here, right-now story is we need to cap our exports heading out our door as we get to the end of the year,” said Mike Zuzolo, president of Global Commodity Analytics.
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On Friday, the U.S. Department of Agriculture reported weekly export sales of U.S. soybeans at 1.77 million tonnes, combining old and new crop years, which were above trade expectations.
The USDA also said private exporters reported sales of 110,000 tonnes of U.S. soybeans to China for 2014/15 delivery.
January soybeans rose 0.8 percent, or 10-3/4 cents, to $13.30-3/4 a bushel at 9:19 a.m. CST (1518 GMT), taking additional support from soymeal futures, which have gained on tight supplies.
Soymeal was up 1.4 percent, approaching a contract high set Wednesday.
Export prospects for U.S. wheat were also in focus, with crop problems emerging in rival exporting countries.
Argentina’s agriculture minister on Thursday projected the country’s 2013/14 wheat crop at 8.5 million tonnes, well below the USDA’s current forecast of 11 million tonnes.
Chicago Board Of Trade front-month December wheat rose 0.2 percent, or 1 cent, to $6.52-1/4 a bushel.
The front month’s gains were limited by larger than expected CBOT deliveries.
December corn eased 0.7 percent, or 2-3/4 cents, to $4.14-1/2 per bushel, as investors sold the golden grain while buying wheat, said Roy Huckabay with the Linn Group, a Chicago brokerage.
Corn was also under pressure after China’s Xinhua News Agency reported that China returned a batch of U.S. corn that showed a genetically modified trait not allowed by its Ministry of Agriculture, Huckabay said.
