Soybeans rise for second day on Brazil weather worries

U.S. soybean futures gained more ground on Tuesday as the market remained concerned about parched conditions in Brazil despite some rain relief at the weekend.

Chicago corn and wheat inched up, with a weaker dollar helping the cereal futures consolidate near recent lows linked to large supplies and tepid exports.

Price movements were restrained, with investors awaiting the release of the Federal Reserve meeting minutes later in the day and also adjusting positions before Thursday's Thanksgiving holiday.

The most-active soybean contract on the Chicago Board of Trade (CBOT) ZS1! was up 0.6% at $13.74-3/4 a bushel by 1151 GMT.

The contract had rebounded more than 2% on Monday from a two-week low as weekend rain in Brazil disappointed market participants and put the focus back on potential crop losses.

Brazil's 2023/24 soybean planting had reached 68% of the expected area, as of Thursday, the slowest progress for the period since 2019/20, agribusiness consultancy AgRural said on Monday.

Farmer groups said last week that some growers in the top agricultural state of Mato Grosso were switching from soybeans to other crops like cotton due to the very dry weather.

"Unless there is ... rainfall in the next few weeks, a significant downward correction of the soybean and corn supply is likely, which should mean that prices remain supported in the short term," Commerzbank analysts said.

Weather forecasts show widespread rain and less intense heat during the rest of the month in Brazil, though precipitation levels appeared moderate.

CBOT corn ZC1! added 0.5% to $4.71-3/4 a bushel, holding above a near three-year low struck on Nov. 13.

The U.S. harvest, which is in its final stages and which the government has forecast at a record high, continued to curb prices.

CBOT wheat ZW1! was up 0.2% at $5.71-1/2 a bushel.

The U.S. Department of Agriculture (USDA) data on Monday rated 48% of the U.S. winter wheat crop in good-to-excellent condition, up one percentage point from last week and the highest for this time of year since 2019.

Wheat traders are watching to see if a recent decline in prices, fuelled by global export competition, will stir sizeable new demand after Tunisia and Jordan called import tenders for this week.