U.S. soybean futures rise to 5-week high on crushing demand

Investing.com - U.S. soybean futures extended gains from the previous session on Wednesday to hit the highest level in almost five weeks amid indications of robust demand for the oilseed.

On the Chicago Mercantile Exchange, US soybeans for March delivery hit a daily peak of $10.1213 a bushel, the strongest level since January 15, before trading at $10.0863 during U.S. morning hours, up 0.23 cents, or 0.02%.

A day earlier, US soybeans for March delivery rallied 17.2 cents, or 1.74%, to settle at $10.0760 a bushel.

The U.S. National Oilseed Processors Association said in a report on Monday that the U.S. soybean crush totaled 162.675 million bushels in January, the largest amount ever for the month.

Despite recent gains, prices of the oilseed remain vulnerable amid optimism over crop prospects in Brazil and Argentina.

Meanwhile, US wheat for March delivery tacked on 2.73 cents, or 0.51%, to trade at $5.3813 a bushel.

On Tuesday, US wheat for March delivery touched $5.4700, a level not seen since January 14, before ending at $5.3460, up 1.6 cents, or 0.33%, as forecasts showing adverse weather conditions across the U.S. grain belt supported prices.

Updated weather forecasting models pointed to frigid weather spanning from the southern Great Plains region to the Northeast through February 19.

Colder-than-normal weather will then linger in the mid-Atlantic states through the Ohio Valley from February 20 until the end of the month, potentially threatening yields and reducing the quality of the harvest.

Despite gains, wheat has been under heavy selling pressure in recent weeks amid ample global supplies and indications of reduced demand for U.S. wheat.

Elsewhere on the Chicago Board of Trade, US corn for March delivery dipped 1.82 cents, or 0.47%, to trade at $3.8838 a bushel. US corn for March delivery eased up 2.2 cents, or 0.58%, on Tuesday to close at $3.8940.

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