Soybeans Poised for Best Week Since 2012 as Abandoned Acres Rise
Soybeans headed for the best weekly gain in more than a year after data showed the number of unplanted acres surged in the U.S., the largest grower, and as dry weather threatened crops.
Soybeans for delivery in November gained as much as 0.5 percent to $12.72 a bushel on the Chicago Board of Trade, the highest price since July 23. Futures traded little changed at $12.64 as of 1:44 p.m. Singapore time, set for a 6.9 percent weekly gain, the most since the five days ended July 20, 2012.
About 1.619 million acres of land originally slated for soybeans were left unplanted, according to the U.S. Department of Agriculture. That compares with 159,579 in 2012, government data show. Dryness will keep lowering yield potential for corn and particularly soybeans in affected areas, Commodity Weather Group said yesterday. Corn and soybeans climbed to record prices in 2012 when the worst drought since the 1930s cut U.S. harvests.
“We still have haunting memories of U.S. Midwest crops from last year,” said Joyce Liu, an investment analyst at Phillip Futures Pte Ltd. in Singapore. “If you have dry weather again, then it can be worrying.”
Little or no rain has fallen in the past two weeks in parts of Iowa and Illinois, the top growers of corn, National Weather Service data show. Farmers filed insurance claims on 3.411 million acres they were unable to plant due to wet weather in May and June, up from 262,467 last year, the USDA said.
Corn for December delivery fell 0.7 percent to $4.6875 a bushel after rising 3.7 percent yesterday. Futures are poised for a weekly advance of 3.4 percent, ending four weeks of losses.
Wheat for December lost 0.2 percent to $6.485 a bushel.
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