Oct. 14 (Bloomberg) -- Soybean futures rose from an eight-week low as precipitation slows harvesting in the U.S., the world’s biggest producer. Corn and wheat also gained.
As much as 1.3 inches (3.3 centimeters) of rain in the next two days will curtail harvesting from North Dakota to Mississippi, with lighter amounts in the eastern portion of the Midwest, T-Storm Weather LLC said in a report. Freezing temperatures next weekend will end the growing season in much of the Midwest with little impact on yields, the forecaster said.
“Harvesting is going to slow and farmers continue to hold tightly to supplies, lending support to the futures and cash markets,” Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago, said in a telephone interview. “Most of the early harvest is going into storage as farmers will wait for a rebound in prices.”
Soybean futures for delivery in November climbed 0.5 percent to close at $12.73 a bushel at 1:15 p.m. on the Chicago Board of Trade, after touching $12.6175, the lowest since Aug. 16.
U.S. soybean reserves left from the 2012 harvest on Sept. 1 fell to a four-year low of 141 million bushels, the government said Sept. 30. Processing probably fell 11 percent in September from a year earlier, the National Oilseed Processors Association is expected to say tomorrow, according to a Bloomberg Survey of six analysts.
“Supplies have been extremely tight and exporters are a little more aggressive,” bidding for immediate inventories, Grow said.
Corn futures for delivery in December rose 0.9 percent to $4.37 a bushel in Chicago after declining five of the past six weeks. U.S. production is expected to rise 28 percent to a record this year.
Wheat futures for delivery in December gained less than 0.1 percent to $6.925 a bushel on the CBOT. The most-active contract touched a 15-week high at $6.9975 on Oct. 8.
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