February 13, 2018 / 4:23 PM / 10 months ago

GRAINS-U.S. soybeans rise as soymeal extends rally; corn firm

(Recasts, updates with U.S. trading, adds new analyst quote, changes byline, dateline; pvs HAMBURG)

By Mark Weinraub

CHICAGO, Feb 13 (Reuters) - U.S. soybean futures rose to a 10-week high on Tuesday, lifted by a surging soymeal market as dry weather in Argentina threatened to reduce crop yields from that key South American supplier, traders said.

Wheat futures were close to unchanged as a rally fizzled after prices hit six-month highs while corn futures firmed, hitting their highest since mid-August.

Soymeal futures jumped another 3.4 percent, their sixth straight day of gains, setting contract highs across the board. The most-active contract peaked at its highest since July 2016.

“Argentina should have some more drought-like conditions this week,” said Brian Hoops, president of Midwest Market Solutions. “That is going to cut into their export forecast.”

Argentina is the largest exporter of soymeal and the third largest soybean exporter.

At 10:11 a.m. CST (1611 GMT), Chicago Board of Trade March soybean futures were up 7-3/4 cents at $10.09-1/2 a bushel.

CBOT March soymeal futures were $12.00 higher at $369.80 a ton. Soymeal futures have gained 13.2 percent during the six-session winning streak.

“Stress on Argentina corn/soy builds from nearly half the belt this week to two-thirds next week based on current forecast,” Commodity Weather Group said in a note to clients.

Corn also received support from the Argentine weather view but the gains in the yellow grain were limited.

CBOT March corn was up 1/2 cent at $3.67-1/2 a bushel.

Persistent dryness in the U.S. Plains provided underlying support to wheat.

CBOT March soft red winter wheat futures were flat at $4.64 a bushel.

“There is a long time to go in crop development but if dryness in the U.S. persists for the next month or so we could see wheat continued to be well supported,” said Graydon Chong, senior commodity analyst with Rabobank. (Additional reporting by Colin Packham in Sydney and Michael Hogan in Hamburg; Editing by David Evans and Bill Trott)

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