US soy rallies with demand; short-covering boosts wheat
Wheat futures jumped on a round of short covering but remained stuck in recent trading ranges. The strength in wheat and soybeans spilled over to corn, which showed little independent strength.
For the week, soybeans were on track for a 2.4 percent gain and wheat a 0.9 percent gain. Corn has firmed 0.6 percent so far this week.
"Strong soy demand continues to hold up that complex this week despite the reality of a string of record harvests," Matt Zeller, director of market information at INTL FCStone, said in a note to clients.
Chicago Board of Trade March soybean futures were 12-3/4 cents higher at \\$9.96-1/2 a bushel at 10:44 a.m. CST (1644 GMT). The front-month contract hit its highest since Feb. 3.
"Soybean supplies are rising this year, but look at the projections for US soybean exports. They (USDA) are talking about a record pace of shipments; that points to pretty strong demand," said Phin Ziebell, an agribusiness economist at National Australia Bank.
US soybean processors likely maintained a healthy crushing pace during January as they scrambled to keep up with surging domestic demand, analysts said.
Soybean crushing was expected to come in at 162.673 million bushels in the National Oilseed Processors Association's monthly
report set for release on Tuesday, according to the average estimate from nine analysts in a Reuters poll.
CBOT March corn was 5 cents higher at \\$3.88 a bushel while CBOT March wheat surged 11 cents to \\$5.32-1/4 a bushel.
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