Soybeans advanced for a second straight day on speculation that the U.S. Department of Agriculture won’t raise its domestic production estimate again as the harvest nears completion. Corn and wheat also climbed.
Farmers will collect 2.86 billion bushels of soybeans, the fewest since 2008, the USDA estimated on Oct. 11. While the projection was 8.6 percent more than a month earlier, the department probably will lower or leave its forecast unchanged in next month’s report because farmers are getting smaller yields, said Jason Britt, the president of Central States Commodities Inc.
“The USDA said we just increased production, but guys are saying we didn’t gain a bushel,” Britt said by telephone from Kansas City, Missouri. “The harvest is so far along, and I don’t see any big revisions.”
Soybean futures for November delivery gained 1 percent to settle at $15.0925 a bushel at 2 p.m. on the Chicago Board of Trade. The price has climbed 25 percent in 2012 as the worst U.S. drought since 1956 curbed production. The USDA will update its global crop outlook on Nov. 9.
Corn futures for December delivery rose 1 percent to $7.455 a bushel in Chicago. The most-active contract is up 15 percent this year because of dry weather.
Wheat futures for December delivery advanced 1 percent to $8.5625 a bushel on the CBOT. The grain has surged 31 percent this year as dry weather in Russia and Australia cut world production.