July 13 (Bloomberg) -- Soybeans gained for the eighth day on speculation stockpiles will be less than forecast by the U.S. Department of Agriculture and rice surged to the highest since 2008 as supplies may fall. Corn rose, erasing earlier losses.
Wet weather slowed planting of soybeans earlier this year and hot, dry weather this weekend and next week will increase stress to developing crops in the western and southern Midwest of the U.S., the biggest shipper of the oilseed. Yesterday the USDA forecast U.S. soybean stockpiles at 175 million bushels, above trade estimates of 167 million, Rabobank International said in a report today.
“There is a risk of future downgrades given the delayed plantings and the developing unfavorable weather pattern in the U.S.,” London-based Rabobank analysts led by Luke Chandler said in a report today. “This will cause the trade to increasingly watch the USDA’s weekly crop-progress reports and weather forecasts.”
Soybean futures for November delivery rose 8.75 cents, or 0.6 percent, to $13.67 a bushel by 1:15 p.m. London time on the Chicago Board of Trade, climbing for the longest rally since August. The price has gained 5.6 percent since June 30, its last decline.
Rice gained as U.S. supplies in 2011-2012 are expected by the USDA to decline 6 percent to 256.6 million hundredweight and stockpiles before the 2012 harvest will fall 30 percent to 29.6 million hundredweight. The U.S. is the world’s third-largest exporter.
Rice for September delivery rose 37 cents, or 2.3 percent, to $16.56 per 100 pounds, and earlier jumped to $16.67, the most expensive price since October 2008 on the Chicago Board of Trade. Futures have gained 12 percent this month.
Corn for December delivery gained 5.75 cents, or 0.9 percent, to $6.6375 a bushel in Chicago. The price yesterday gained 4 percent, the biggest jump since June 28.
Wheat for September delivery rose 8 cents, or 1.2 percent, to $6.80 a bushel. The grain jumped 5.1 percent yesterday, the biggest advance since May 18. Milling wheat for November delivery on NYSE Liffe in Paris gained 3.75 euros, or 2 percent, to 195 euros ($274) a metric ton.
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