Chicago soybean futures gained more ground on Friday, with the market on track for its biggest weekly gain since late August as dry weather in Brazil and strong Chinese demand supported prices.
Corn and wheat were also poised for weekly gains after tepid performances last week.
"South American weather worries remain a big plus for beans," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
The most-active soybean contract on the Chicago Board of Trade was up 0.5% at $11.08-3/4 a bushel, as of 0235 GMT. The contract has gained almost 5% this week, its highest since the week ending Aug. 28.
Corn is up more than 3% this week, while wheat has gained over 2%.
Dry weather affecting corn and soybean planting in Brazil, as well as winter wheat seeding in the United States and Russia, threatens to trim ample global supplies as China drives demand.
World Food Prices
World food prices rose for a fifth straight month in October, fully recovering from the shock caused by the global COVID-19 pandemic and with gains seen in most sectors, the United Nations food agency said on Thursday.
An attache report from the U.S. Department of Agriculture's (USDA's) Foreign Agricultural Service post in Beijing estimated China's corn imports in the 2020/21 marketing year at 22 million tonnes, well above the USDA's official forecast of 7 million tonnes.
Recent rains in Argentina gave a boost to the start of soybean planting for the 2020/21 cycle, the Buenos Aires Grains Exchange said on Thursday, with a forecast of 17.2 million hectares of planting area for the season.
Commodity funds were net buyers of CBOT soybeans, corn, soyoil, wheat and soymeal futures contracts on Thursday, traders said.