Chicago soybean rallies for third session on wet weather

Chicago soybean prices extended the winning streak into a third session on Tuesday, on technical buying and market expectations that Chinese buyers may pick up their demand. Wheat and corn both bounced off. The most active corn contract for December delivery rose 12 cents, or 1.9 percent, to close at 6.455 U.S. dollars per bushel. December wheat jumped 17 cent, or 2.8 percent, to 6.3275 dollars per bushel. January soybean rallied 22 cents, or 1.9 percent, to close at 12.0025 dollars per bushel. The U.S. Department of Agriculture (USDA) reported late Monday that U.S. corn harvest is 93 percent complete compared with 87 percent a week ago and higher than the average seasonal pace of 82 percent. And the soybean harvest is 96 percent complete, up from 92 percent a week ago and the five-year average of 94 percent. A trader mentioned that corn and soybean both gained some steam as intermittent rains over the next 10 days in U.S. Mid-west is expected to slow the last leg of U.S. corn and soybean harvest. Meanwhile, soybean price also gained strong momentum on more talks that China may be a more active buyer of U.S. soybean for the 2011/12 season than the current projection of USDA. Besides, soybean received some extra support on trade expecation that farmers in South America have planted less soybean area than expected and sowed more corn instead due to high prices. But some traders believed that the three-day rally was mostly driven by technical buying as the soybean market is oversold and in need of a technical correction.