U.S. soybean futures rise for 3rd day as soy oil extends rally

Investing.com - U.S. soybean futures rose for the third consecutive session on Wednesday, supported by strong gains in the soy oil market amid talk of strong overseas demand.

On the Chicago Mercantile Exchange, US soybeans for July delivery touched an intraday peak of $9.8788 a bushel, the most since April 30, before trading at $9.8712 during U.S. morning hours, up 1.92 cents, or 0.2%. A day earlier, soybean prices tacked on 8.4 cents, or 0.87%, to end at $9.8460.

A sharp rally in soybean oil futures over the past few sessions boosted prices of the oilseed. Prices of the oil are up nearly 6% so far this week.

Meanwhile, US corn for July delivery inched up 1.52 cents, or 0.42%, to trade at $3.6412 a bushel. On Tuesday, corn fell to $3.5560, a level not seen since October 27, before turning higher to close at $3.6260, up 1.4 cents, or 0.42%.

Corn prices have been under pressure in recent weeks amid indications of rapid planting progress in the U.S. Midwest.

According to the U.S. Department of Agriculture, approximately 55% of the corn crop was planted as of May 3, up from 19% in the preceding week. Nearly 28% of the crop was planted during the same week a year earlier, while the five-year average for this time of year is 38%.

Elsewhere on the Chicago Board of Trade, US wheat for July delivery advanced 2.43 cents, or 0.52%, to trade at $4.6962 a bushel. Futures slumped to a contract-low of $4.6060 on Tuesday, before settling at $4.6640, down 6.2 cents, or 1.32%.

Gains were expected to remain limited as dry weather conditions in key U.S. wheat-growing states was likely to benefit crop conditions.

Nearly 75% of the spring wheat crop was planted as of May 3, up from 55% in the preceding week, according to the USDA. Only 25% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 40%.

The agency also said that the U.S. winter wheat crop was rated 43% good to excellent as of last week, up from 42% in the preceding week.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.