Soybeans climbed to the highest in two weeks on concern that dry weather will hurt crops in Brazil, the world’s biggest exporter. Corn and wheat also rose.
Growing areas in Brazil will be warmer and drier than normal during the next 10 days, with temperatures this week topping 100 degrees Fahrenheit (38 degrees Celsius) in some regions, AccuWeather Inc. said in a report today. While dryness will allow early soybean harvesting to progress across northern regions, it may boost stress on late-crop growth in central, southern areas, MDA Weather Services said today in a report.
“The dryness and heat is getting more widespread in Brazil,” Jason Britt, the president of Central States Commodities Inc. in Kansas City, Missouri, said in a telephone interview. “The perception is that yields are getting smaller,” which may boost demand for U.S. soybeans, Britt said.
Soybean futures for March delivery advanced 1.6 percent to close at $13.1325 a bushel at 1:15 p.m. on the Chicago Board of Trade, climbing for a fourth day. Prices earlier touched $13.16, the highest since Jan. 17.
The soybean harvest in Mato Grosso, Brazil’s top producing state, was 10 percent complete as of yesterday, forecaster Somar Meteorologia said today.
Futures also rose on speculation that U.S. inventories before the 2014 harvest will be smaller than previously expected, Britt said. The U.S. Department of Agriculture may cut its estimate to 145 million bushels from a forecast last month of 150 million bushels, according to a Bloomberg survey before the agency’s report Feb. 10.
Corn futures for delivery in March rose 1.4 percent to $4.4175 a bushel after touching $4.42, the highest for the most-active contract since Nov. 13.
Wheat futures for March delivery jumped 3.7 percent to $5.845 a bushel, the biggest gain since April 3.
In Kansas, the top U.S. producer of winter varieties, about 35 percent of the crop was in good or excellent condition as of yesterday, down from 58 percent on Dec. 30, USDA data show.