Soybean futures advanced for the second straight day on signs that rain will hinder harvesting in the U.S., the world’s biggest producer. Wheat climbed to the highest since June, and corn gained.
As much as 1 inch (2.5 centimeters) of rain in the past 24 hours halted fieldwork in Nebraska and Minnesota and as much as 2.5 inches in the next four days will stall collection of the soybean crop in half of the Midwest, T-Storm Weather LLC in Chicago said in a report. As of Sept. 29, the harvest trailed the average in the previous five years, government data showed. Margins for processors rose to the highest in almost four weeks.
“Wet weather slowed planting and low temperatures stunted crop development in the spring, leaving some end-users in a lurch trying to fill needs,” Jim Gerlach, the president of A/C Trading Co. in Fowler, Indiana, said in a report.
Soybean futures for November delivery rose 0.8 percent to $12.835 a bushel at 10:50 a.m. on the Chicago Board of Trade. Yesterday, the price climbed 0.5 percent. In the third quarter, the oilseed posted the first gain in a year on supply concerns.
Wheat advanced on speculation that rain will reduce planted area and production in Ukraine and Russia, boosting demand for grain from the U.S., the top exporter.
Eastern Ukraine, Russia’s Volga Valley and the Caucasus region may see “widespread moderate to locally heavy” rain through tomorrow, AccuWeather Inc. said in a report.
Ukraine’s winter-wheat planting may be 30 percent less than the country’s target after record rain last month, the national weather center in Kiev said on Sept. 27. In Russia, winter grain sowing may be as low as 13 million hectares, below the intended area of 16.4 million, the nation’s Grain Union said on the same day.
Wheat futures for December delivery climbed 1.3 percent to $6.95 a bushel in Chicago. Earlier, the price reached $6.97, the highest for a most-active contract since June 24.
Corn futures for December delivery rose 0.4 percent to $4.4075 a bushel. Yesterday, the price touched $4.35, the lowest since Aug. 31, 2010.
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