GRAINS-Soybeans climb on South American crop stress
By Christopher Walljasper
CHICAGO, Nov 27 (Reuters) - Chicago soybean futures lifted on Friday as continued dryness in South America threatened to stress the crop in Brazil and Argentina.
Corn and wheat also climbed on strong export demand.
Chicago Board of Trade's most-active soybean futures gained 6-1/4 cents to $11.90-1/4 a bushel as of 11:12 a.m. (1712 GMT).
CBOT corn gained 5 cents at $4.32-1/2 a bushel, while wheat added 7-1/4 cents to $6.03-3/4 a bushel.
Trade in CBOT grains and oilseed futures closes at 12:05 p.m. CST (1805 GMT) due to the U.S. Thanksgiving holiday.
Prolonged dryness in key crop-growing regions of South America supported soybeans, as crop stress is expected to reduce yields in Brazil and Argentina.
"If they end up being mediocre-to-poor, it certainly tightens the balance sheet up and will bring world buyers back to the United States," said Chuck Shelby, president of Risk Management Commodities.
Lower-than-expected soybean export sales capped gains, as weekly sales fell to a marketing-year low 768,100 tonnes, according to the U.S. Department of Agriculture (USDA).
Sales to China reached a 4-month low at 578,700 tonnes, with 66,000 tonnes in sales switched from China to Egypt.
"It’s still a really robust number. China is in for a big portion of that," said Ted Seifried, VP and Chief Market Strategist at Zaner Group. "We are very much in danger of running out of soybeans between now and the end of the marketing year."
Corn was supported by private sales of 302,160 tonnes of corn to Mexico for shipment in the 2020/21 marketing year, bolstering strong weekly exports last week totaling 1.67 million tonnes, according to the USDA.
Export sales of wheat notched a marketing-year high of 795,800 tonnes for the week ended Nov. 19, led by 333,000 tonnes to China, its biggest weekly U.S. wheat purchase since March, according to the USDA. (Reporting by Christopher Walljasper; Editing by Aurora Ellis)
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