Soybean futures are trading at their best levels in about a decade as the supply crunch and strengthening demand supported another session of massive gains. The agricultural commodity is poised for a notable week, which will inevitably add more to inflationary pressures worldwide.

July soybean futures advanced $0.3625, or 2.08%, to $17.7625 per bushel at 17:46 GMT on Thursday on the Chicago Board of Trade (CBoT). Soybean prices are on track for a weekly gain of nearly 3%, adding to their year-to-date rally of more than 32%.

Investors advanced their bullish sentiment on data suggesting strengthening demand for US cargoes. US Department of Agriculture (USDA) data highlighted greater weekly export sales of soybeans, totaling 1.025 million metric tons for the current and new marketing season. In addition, private exporters recorded sales of 143,000 metric tons to unknown destinations.

According to the Commodity Futures Trading Commission (CFTC), commodity funds were net buyers of soybean, soy oil, corn, and wheat.

Output is one of the chief reasons for this substantial rally. In India, for example, monsoon rains are anticipated to intensify in the coming days, which would decimate the Southeast Asian’s production of soybean, corn, cotton, sugar, and peanuts.

Agricultural markets will be monitoring the USDA’s Crop Production Report on Friday. Some traders are bracing for numbers that show abysmal planting and production.

A strengthening greenback limited soybean’s rally. The US Dollar Index (DXY), which gauges the greenback against a basket of currencies, surged 0.59% to 103.15, from an opening of 102.54. A stronger buck is bad for commodities priced in dollars because it makes it more expensive for foreign investors to purchase.

In other agricultural commodities, July corn futures surged $0.1425, or 1.86%, to $7.7875 per bushel. July wheat futures slipped $0.0325, or 0.3%, to $10.715 a bushel. July coffee futures dipped $0.006, or 0.26%, to $2.3405 per bushel.