Feb. 21 (Bloomberg) -- Soybeans gained for a second day on dry weather in South America and after China bought 8.62 million metric tons from the U.S. Corn and wheat fell.
Global production will be 6 percent lower this year because of the lack of rain in Brazil and Argentina, Rabobank International said in a report yesterday. The bank raised its price forecast to an average of $12.90 a bushel in the first quarter this year from $12.25 a bushel last month.
“It was still hot and dry in Paraguay and Brazil” over the weekend, said Erin FitzPatrick, an analyst at Rabobank in London. The extent of the damage is “still uncertain because they are only now harvesting in Brazil.”
Soybeans for May delivery climbed 0.4 percent to $12.7825 a bushel at 9:57 a.m. London time on the Chicago Board of Trade. The price has jumped six of the past seven sessions.
China on Feb. 15 said it bought soybeans valued at $4.3 billion from the U.S. The oilseed will be supplied by Cargill Inc., Archer Daniels Midland Co., Bunge Ltd. and CHS Inc., Iowa Soybeans Association Chief Executive Officer Kirk Leeds said last week.
The “large soybean-supply agreement between the U.S. and China continues to provide underlying support to the oilseed complex,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said in an e-mail today.
Corn for May delivery fell 0.5 percent to $6.42 a bushel in Chicago. Wheat for delivery in the same month fell 0.4 percent to $6.45 a bushel. Milling wheat for May delivery on NYSE Liffe in Paris fell 0.7 percent to 210 euros ($278) a metric ton.
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.