Soybeans advanced for a fourth consecutive session as dry weather in the U.S. Midwest heightened concern supply will be damaged and trail a government forecast. Corn declined.
Temperatures in the Ohio River Valley in the eastern Midwest will be “very high” today, and daily rainfall totals in the next two days likely will be less than 0.25 inch (0.6 centimeter), AccuWeather Inc. said today. Crop conditions in the U.S. deteriorated in the two weeks through June 17, according to the U.S. Department of Agriculture.
“Concerns around weather conditions particularly in the U.S. provided a boost to prices across the complex,” Michael Creed, an agribusiness economist at National Australia Bank Ltd., said by phone from Melbourne today.
Soybeans for November delivery rose 0.5 percent to $13.92 a bushel on the Chicago Board of Trade at 11:17 a.m. London time, up 6.4 percent since June 14. Corn for December delivery fell 0.4 percent to $5.6125, after jumping 11 percent in the previous two days, the most since October 2010.
Soybean prices still have “fairly significant upside” because the USDA has projected that supplies will tighten in the next year, while the rally in corn “got a little overdone” because a jump in U.S. acreage means production will likely expand, said Dave Norris, an independent grain broker in Harrogate, England.
U.S. farmers planted 95.9 million acres of corn, the most since 1937, and 73.9 million acres of soybeans, 1.5 percent less than a year earlier, the USDA said March 30. The agency will update its planting estimate on June 29. U.S. soybean stockpiles on Aug. 31 may total 175 million bushels, before sliding to 140 million in the following year, the USDA said June 12.
“Soybeans are the one market that still has the potential to have fairly significant upside, because old crop stocks are very tight,” Norris said. “The whole world has to get through to 2013 with the soybeans that America can produce this year, because the Brazilian and Argentine harvests are a long way off.”
Wheat for December delivery was little changed at $6.9375 a bushel in Chicago. In Paris, November-delivery milling wheat was up 0.1 percent at 210.50 euros ($267) a metric ton on NYSE Liffe.