Soy set for longest run of weekly gains in 7 years

U.S. soybeans rose on Friday, putting the market on track for a seventh consecutive week of gains, the longest such rally in seven years, boosted by output losses in key exporter Argentina.

Wheat prices were lower as the market remained weighed down by ample supplies and a generally favorable global crop outlook while corn futures were little changed.

Chicago Board of Trade July soybeans were up 0.1 percent to $10.81 a bushel by 1030 GMT. The most active contract is up 0.6 percent this week, its seventh consecutive weekly rise.

Soybeans last rallied for seven straight weeks in June 2009.

"The Buenos Aires Grain Exchange has this week maintained its 56 million tonnes forecast, but plenty of market chatter is still circulating about additional cuts to Argentine output," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

"We think the beans rally might have more in it yet."

Argentina's 2015/2016 soybean harvest is going well, the Buenos Aires Grain Exchange said on Thursday, after drier weather in recent weeks following severe rains last month which paralyzed the process and sent prices climbing on fears of a shortage.

Argentina's soy-producing regions were drenched by heavy rains in April, just ahead of the harvest, raising questions about the size and quality of the crop.

Wheat futures were lower as the market's focus switched back to bearish fundamentals after gaining earlier in the week on spillover support from soybeans and corn.

"It remains tough to get bullish on wheat on its own merits. Black Sea crops will probably exceed last year, as might EU output," David Sheppard, managing director of UK merchant Gleadell said.

The International Grains Council on Thursday raised its forecast for world wheat production in 2016/17 to 722 million tonnes, up from a previous estimate of 717 million but below the prior season's record 736 million.

July CBOT wheat was off 0.5 percent at $4.79 a bushel while December wheat in Paris fell 0.9 percent to 170.25 euros a tonne.

Corn prices were little changed with July up a marginal 0.06 percent at $4.08-1/2 a bushel.

Dealers said the market was underpinned by the prospect of lower shipments from Brazil as the supply crisis in the world's number two exporter deepens.