CHICAGO, Jan 26 (Reuters) - U.S. soybean futures hit their
highest in seven months on Wednesday on technical buying and as
soyoil futures rallied with energy markets and historically high
palm oil prices.
Concerns about a reduced South American harvest and exports
from top soy supplier Brazil offered further support, with
strength spilling over into corn futures.
Wheat futures fell sharply after two days of strong gains
that lifted prices to two-month highs.
"Soybeans turned higher early and made another leg up. A lot
of that was due to sharply higher bean oil, which is following
the palm oil," said Terry Reilly, senior commodities analyst
with Futures International.
"Other outside markets are also supporting the bean oil and
the soybeans, most notably crude oil," he said.
Crude oil prices reached their highest since 2014 on
Wednesday, providing support to corn and soybeans, both key
feedstocks for making biofuel.
Chicago Board of Trade March soybeans settled up
32-3/4 cents at $14.40 a bushel, the highest for a most-active
contract since June 17. All soybean contracts posted fresh
March corn added 7 cents to $6.27 a bushel, while CBOT
March wheat tumbled 23 cents to $7.95 a bushel.
Concerns about tightening global soy supplies limited
selling interest in soybeans as traders continue to monitor poor
crop weather in parts of South America.
Safras & Mercado slashed its Brazilian soy exports estimate
Traders have also been circulating Brazilian production
estimates from private forecasters, one of which suggested the
harvest could be more than 12 million tonnes smaller than the
latest U.S. Department of Agriculture estimate.
Meanwhile, private analytics firm IHS Markit Agribusiness
reduced its outlook for U.S. soy plantings in 2022.
The market is also watching developments along the
Russia-Ukraine border, which could disrupt grain shipments from
the major exporting region.
(Additional reporting by Naveen Thukral in Singapore, Sybille
de La Hamaide in Paris and Pavel Polityuk in Kiev; Editing by
Kirsten Donovan, Alexander Smith and Jonathan Oatis)