Dec. 24 (Bloomberg) -- Soybeans rose for a second session on speculation that dry weather may damage yields in Brazil, while rain threatens crops in Argentina. Corn gained.
Dry weather will evaporate soil moisture from west-central to northeast Brazil, increasing the risk for yield losses of crops, World Weather Inc. said in a report today. Rain expected over the next three days will interrupt planting in Argentina, the forecaster said. Brazil is poised to top the U.S. as the largest soybean producer and exporter this year, the U.S. government said Dec. 11. Argentina is the biggest shipper of soy-based animal feed and cooking oil.
“The market is starting to focus on pockets of adverse weather,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “Dryness is not serious, but could become more widespread by early January.”
Soybean futures for March delivery rose 0.5 percent to close at $14.3575 a bushel at 12 p.m. on the Chicago Board of Trade, capping the first two-day gain since Dec. 14. The price has gained 19 percent this year after dry weather reduced output in the U.S. to a four-year low.
U.S. markets will be closed tomorrow for Christmas. The CBOT will open at 9:30 a.m. on Dec. 26 for grains.
Corn futures rose for the second session on speculation that demand will increase for grain to make livestock feed, Schultz said.
U.S. feedlots last month purchased more cattle than analysts expected, U.S. Department of Agriculture data showed on Dec. 21. Weights for animals sold for commercial slaughter rose 2.2 percent to a record 1,321 pounds in November from a year earlier, the agency said last week.
Corn futures for March delivery climbed 0.3 percent to $7.0425 a bushel on the CBOT, capping the first two-day increase since Nov. 27. The most-active futures added 8.9 percent this year after drought reduced U.S. output for a third year.
Corn was the biggest U.S. crop last year, valued at $76.5 billion, followed by soybeans at $35.8 billion.
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