Chicago corn, soybean jump on South America weather woes - Xinhua

CHICAGO, Dec. 27 (Xinhua) -- Chicago corn and soybean rallied on Tuesday, on rising expectations that adverse weather will reduce yield potential in Argentina and Brazil, boosting demand for U.S. supplies. Wheat price also rose.

The most active corn contract for March delivery added 13.75 cents, or 2.2 percent, to close at 6.3325 U.S. dollars per bushel. March wheat jumped 22.75 cents, or 3.7 percent, to 6.4475 dollars per bushel. Jan. soybean jumped 37 cents, or 3.2 percent, to close at 12.095 dollars per bushel.

Corn and soybean extended its winning streak on Tuesday, amid increasing concerns over threatening weather condition in South America, after rain came up short of expectation over the weekend.

A trader said that hot, dry conditions in next ten days will increase stress on plants in parts of South America, which may cause downward revisions in the Brazilian crop, after below-normal rain in the past month reduced soil moisture.

The market also got a boost from upbeat outside market forces, as U.S. dollar weakened and U.S equity jumped, after a report showed confidence among U.S. consumers rose to an eight-month high in December, lifting market sentiment.