Soybean advanced for a second day amid speculation that demand for biofuel made from the oilseed will increase due to high prices for crude oil and weak dollar that boosted demand for commodities.

The dollar declined against other 10 most actively traded currencies on concerns the Federal Reserve will reduce borrowing costs this month.

Soybean oil is used to make biodiesel, which is blended with conventional diesel.

Soybeans for May delivery increased by 2.5 percent to $13.4525 a bushel on the Chicago Board of Trade.

Soybean stockpiles were forecasted to fall by 72 percent to 160 million bushels from 574 million last year.

Corn for May delivery increased by 1.2 percent to $6.1225 a bushel.

The U.S. Department of Agriculture forecasted pre-harvest inventories to decline sharply due to high demand for livestock feed and biofuel ethanol.

France was forecasted to harvest 14.3 million metric tons of corn more than 12.3 million tons last year.

Wheat for July delivery increased by 1.7 percent or 16.25 cents to $9.63 a bushel.