Soybeans rose for a second day in Chicago on signs of demand for U.S. supplies after prices fell for two weeks and as dry weather in Brazil and excessive rains in Argentina may hurt crops in the world’s main growing region.
Soybeans inspected at U.S. ports for export increased 6.8 percent in the week ended Nov. 8 from the prior period to 64.1 million bushels, the country’s Department of Agriculture reported yesterday. Crushing by oilseed processors probably climbed in October from a year earlier, analysts estimate.
“The recent selloff in prices started to attract some buying interest, especially in soybeans,” Arnaud Saulais, a broker at Starsupply Commodity Brokers in Nyon, Switzerland, wrote in an e-mailed comment today.
Soybeans for January delivery gained 0.8 percent to $14.1875 a bushel on the Chicago Board of Trade by 1:24 p.m. London time. Prices yesterday touched $13.9125, the lowest level since June, after rising to a record $17.89 in September.
“The strong drop in soybean prices seems to be waking up the buyers and particularly the importers, who can benefit from the violent price corrections to proceed with buying operations at prices well below those in recent months,” Paris-based farm adviser Agritel wrote in a comment.
Crushing by companies in the National Oilseed Processors Association probably rose 3.6 percent from a year earlier to 146 million bushels in October, according to the average estimate of eight analysts compiled by Bloomberg. The group releases its report in Washington today.
Demand “is still supportive, at least over the next few months,” Victor Thianpiriya, an agricultural analyst at Australia & New Zealand Banking Group Ltd., said from Singapore today. The harvest in South America will also set the price direction, he said.
In Argentina, the third-largest grower and exporter, about 11 percent of the soybean crop was sown as of Nov. 8 after rain made the land too wet for farm machinery, researcher Oil World said yesterday. That was behind last year’s pace of 25 percent.
In Brazil, predicted by the USDA to be the largest grower this marketing year, recent rain was insufficient to help crops in the states of Mato Grosso, Mato Grosso do Sul, Goias, Minas Gerais and Bahia, said Oil World. Some areas of Mato Grosso had no “noticeable rainfall” in two to four weeks, it said.
Corn for March delivery fell 0.1 percent to $7.2525 a bushel and wheat for delivery in the same month added 0.2 percent to $8.675 a bushel. Milling wheat for January delivery traded on NYSE Liffe in Paris gained 0.6 percent to 269.50 euros ($343) a metric ton.
Thirty-six percent of U.S. winter wheat was rated as good or excellent as of Nov. 11, down from 39 percent a week earlier, the USDA said yesterday. At the same time last year, 50 percent of the grain got the top ratings.
“In wheat, the operators remain very vigilant with regards to the 2013 harvest, taking into account the new deterioration of the wheat crop conditions,” Agritel wrote.