Soybeans Rise on South America Weather; Corn Gains; Wheat DropsTony C. Dreibus
Soybeans surged to the highest in more than a month as dry weather threatens crops in South America and demand for U.S. inventories increases. Corn also rose, while wheat fell.
Dry weather in soybean- and corn-growing areas of Brazil, including Rio Grande do Sul and Parana, “bears watching,” forecaster Telvent DTN said in a report today. U.S. exporters sold 120,000 metric tons of soybeans to China, the Department of Agriculture said in a report today. Since Sept. 1, China has purchased 1.09 million tons from the U.S., the world’s biggest shipper, for the current season and 300,000 tons for next year, USDA data show.
“The weather in Brazil and most of Argentina” is boosting prices, Tomm Pfitzenmaier, a partner at Summit Commodity Brokerage in Des Moines, Iowa, said by telephone. “We had some Chinese purchases, so that’s supportive of prices.”
Soybean futures for March delivery gained 1.6 percent to settle at $14.5175 a bushel at 2 p.m. on the Chicago Board of Trade. The price earlier touched $14.6075 a bushel, the highest since Dec. 19.
Corn futures for March delivery climbed 0.1 percent to $7.285 a bushel on the CBOT. The price has advanced in 10 of the past 11 sessions. The most-active contract has gained 4.3 percent this month. The exchange was closed yesterday for a public holiday.
Wheat futures for March delivery fell 1.5 percent to $7.7925 a bushel in Chicago.