Nov. 21 (Bloomberg) -- Soybeans rose for a third day in Chicago, erasing a drop, as prospects deteriorate for planting in South America amid ample demand for U.S. crops. Corn gained.
Wet weather in parts of Argentina and dry conditions in Brazil spurred researcher Oil World yesterday to cut its outlook for soybean production in five South American countries by 3 million metric tons. U.S. shippers have booked sales of 26.5 million tons since the marketing year began Sept. 1, 33 percent more than a year earlier, government data show. Soybeans are down 21 percent since U.S. drought concerns sent prices to a record $17.89 a bushel in September.
“The price didn’t seem to have any demand-rationing effect when we were at $17, so it’s certainly not going to have an effect now,” Dave Norris, an independent grain broker in Harrogate, England, said by phone today. The U.S. “may run out of soybeans by the second half of 2013, and then we’ll have massive shipping delays for supplies from South America.”
Soybeans for delivery in January climbed 0.5 percent to $14.1925 a bushel at 7:10 a.m. on the Chicago Board of Trade, reversing a decline of as much as 1 percent. Trading of agricultural products will be closed tomorrow in the U.S. for the Thanksgiving holiday.
Corn for delivery in March rose 0.2 percent to $7.49 a bushel, while wheat for delivery in the same month added 0.1 percent to $8.6125 a bushel in Chicago. In Paris, January-delivery milling wheat declined 0.1 percent to 270 euros ($346) a ton on NYSE Liffe.
Russia’s Agriculture Minister Ilya Shestakov today lifted the country’s grain export forecast to 15.5 million tons, up 29 percent from a target of 12 million tons set by ministry spokesman Evgeny Pavelko on Nov. 19. The country isn’t planning to institute export curbs following a drought this season that cut supplies, Shestakov said in Moscow.
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