(Recasts; updates with US prices, adds quotes, changes byline,
changes dateline from previous BEIJING/PARIS)
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Soybeans follow crude oil; Midwest crop weather
uncertainty
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Soyoil pauses after sharp two-day rally
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Wheat higher on slow US winter wheat harvest,
short-covering
By Julie Ingwersen
CHICAGO, June 17 (Reuters) - Chicago Board of Trade
soybean futures were higher on Tuesday, supported by rising
crude oil prices and uncertainty about Midwest crop weather in
the weeks ahead, while soyoil prices eased following a sharp
two-day rally tied to stronger U.S. biofuel blending mandates.
CBOT wheat hit a one-week high as a slow start to the U.S.
winter wheat harvest allowed speculators to cover short
positions, analysts said. Corn futures were mostly higher,
following wheat and crude oil, but the front July contract
was under pressure.
As of 1:11 p.m. CDT (1811 GMT), CBOT July soybeans
were up 3-1/4 cents at $10.73 per bushel, while July soyoil
was down 0.31 cent at 54.80 cents per pound, retreating
from early strength. July wheat was up 12-1/2 cents at
$5.49 a bushel.
CBOT July corn was down 2-3/4 cents at $4.32 a
bushel, but new-crop December corn was up 4 cents at
$4.39 a bushel.
Strength in energy markets supported corn and soybeans, given
the crops' role in the production of biofuels. U.S. crude oil
prices climbed 3.5% as the Iran-Israel conflict raged with no
end in sight, though major oil and gas infrastructure and flows
have so far been spared from substantial impact.
"The Middle East situation is continuing to cause
disruptions in the outside markets, which are spilling over into
our markets," said Terry Reilly, senior agricultural strategist
for Marex.
Soybean futures drew support after the U.S. Department of
Agriculture on Monday rated 66% of the U.S. soy crop as
good-to-excellent, down from 68% last week, while corn ratings
improved to 72% good-to-excellent, up 1 percentage point. Summer
weather is becoming increasingly important to crop prospects,
analysts noted.
"For this time of year, we have taken enough risk premium
out, until we get a better look at the weather as we get past
the Fourth of July," said Don Roose, president of Iowa-based
U.S. Commodities.
Wheat futures bounced, supported in part by the USDA's
report that the winter wheat harvest was 10% complete, behind
the five-year average of 16%.
"With the harvest behind, and too-wet conditions, it's giving
the wheat market a bounce," Roose said, noting that commodity
funds hold a large net short position in CBOT wheat futures,
leaving the market prone to short-covering rallies.
In France, the Farm Ministry on Tuesday forecast a strong
rebound of the country's 2025 winter barley and rapeseed
production from rain-hit crops last season.