GRAINS-Soybeans set for first weekly gain in 1-1/2 months on strong demand

SINGAPORE, Dec 15 (Reuters) – Chicago soybeans rose on Friday, with the market poised for its first weekly gain in 1-1/2 months, underpinned by strong demand and concerns that dry weather in top exporter Brazil will have a detrimental effect on crops.

Wheat gained 0.7% while corn edged higher.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 climbed nearly 1% this week, and set for its first weekly gain since early November. Wheat Wv1 lost 1.6% this week and corn Cv1 dropped 1.2%.

* Soybeans edged 0.1% higher to $13.15 a bushel by 0115 GMT on Friday, wheat added 0.7% to $6.20-1/4 a bushel and corn gained 0.1% to 4.79-1/2 a bushel.

* The soybean market is being underpinned by strong demand for U.S. cargoes as dryness threatens production in Brazil, although there are forecast of some rains next week.

* The U.S. Department of Agriculture said in a daily reporting system that exporters sold 400,000 metric tons of Chicago soybeans to unknown destinations. It was the seventh consecutive session in which the USDA announced a daily soybean sale.

* Some much-needed showers will arrive in the northern third Brazil’s crop areas late next week, after hot, dry weather this week, forecaster Commodity Weather Group said.

* Brazilian soy farmers, some of whom were forced to replant their beans due to adverse weather at the onset of the season, are facing a dearth of seeds on the market as suppliers have run out of the main cultivars, Marino Colpo, chief executive of seed company Boa Safra Sementes SOJA3.SA, told Reuters in an interview.

* In Argentina, the government has reopened its grain export registry, according to a statement on Thursday, which is needed to allow companies from the key agricultural supplier to ship major crops like processed soybeans and corn.

* A monthly National Oilseed Processors Association report is expected to show on Friday that the U.S. soybean crush set a November record but slowed from an all-time high in October, analysts said.

* Commodity funds were net buyers of CBOT wheat, soybean and soymeal futures contracts on Thursday, traders said. Funds were net sellers of soyoil and flat in corn, they said. COMFUND/CBT

MARKET NEWS

* U.S. stocks pared earlier gains to close modestly higher on Thursday, while benchmark Treasury yields dropped to multi-month lows after investors rotated out of momentum growth stocks following the U.S. Federal Reserve’s dovish pivot. MKTS/GLOB