Soybeans rallied to the highest level in almost a month, extending the biggest weekly advance in more than a year, on concern that dry weather in the Midwest may curb yields. Corn and wheat gained.
The oilseed for November delivery gained as much as 2 percent to $12.85 a bushel on the Chicago Board of Trade, the highest price since July 23, and was at $12.83 at 10:18 a.m. in Singapore. Prices surged 6.5 percent last week, the most since the period ended July 20, 2012.
The Standard & Poor’s GSCI Index of eight agricultural commodities slumped 18 percent this year as soybeans dropped 9 percent on expectations that U.S. production will rebound from drought last year. Dry weather is expected to continue across the west-central Midwest for the next 10 days and moisture shortages and stress will build for soybeans and corn, MDA Information Systems LLC said in an Aug. 16 report.
“There’s dryness starting to creep back in in parts of the Midwest,” said Paul Deane, an agricultural economist at Australia & New Zealand Banking Group Ltd. “Export sales were strong last week for soybeans.”
Exporters sold 284,000 tons of soybeans to China for delivery in the year starting Sept. 1, the U.S. Department of Agriculture said Aug. 16. Total net U.S. export sales of the oilseed were 1.9 million tons in the week ended Aug. 8 from 1.1 million tons a week earlier, according to the USDA.
Farmers in the U.S., the world’s biggest grower, will gather 3.26 billion bushels of soybeans this year, compared with the 3.42 billion bushels forecast in July, the U.S. Department of Agriculture said Aug. 12.
Corn for December delivery surged as much as 2.5 percent to $4.75 a bushel and traded at $4.7275. The price reached $4.7575 on Aug. 16, the highest since Aug. 1. Wheat for delivery in December gained as much as 1.8 percent to $6.5475 a bushel and was at $6.50.
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