Soybeans Advance as Dry Weather Reduces U.S. ProductionWhitney McFerron and Jeff Wilson
Soybean futures rose before a government report tomorrow that may show the U.S. crop, the world’s largest, will be smaller than forecast following dry weather in the past month. Corn and wheat gained.
This year, farmers may harvest 3.13 billion bushels of soybeans, 3.7 percent less than estimated a month earlier, according to a Bloomberg survey of analysts. Parts of Iowa and Illinois, the biggest state growers, got as little as 5 percent of the normal amount rain in the past 30 days, National Weather Service data show. Temperatures averaged as much 5 degrees Fahrenheit above normal.
“August weather is key to setting U.S. soybean yields, with conditions over the month signaling a large cut to expected production,” Goldman Sachs Group Inc. analysts including Jeffrey Currie in New York said in a report. “This will limit the recovery in already-tight U.S. inventories and will limit the decline in soybean prices in coming months.”
Soybean futures for November delivery gained 0.2 percent to close at $13.5825 a bushel at 1:15 p.m. on the Chicago Board of Trade. The price has climbed 13 percent since the end of July as drought conditions expanded across the Midwest.
The U.S. Department of Agriculture said on Sept. 9 that crop conditions deteriorated for the fourth straight week.
Corn futures for December delivery gained 0.7 percent to $4.725 a bushel. The price has slumped 32 percent this year on expectations that the U.S. harvest will rebound to an all-time high after drought curbed last year’s crop.
The USDA may lower its forecast tomorrow for the record harvest to 13.6 billion bushels, 0.9 percent below the August outlook, according to Bloomberg’s survey.
Wheat futures for December delivery rose 0.2 percent to $6.48 a bushel.
Egypt, the biggest importer last year, bought 235,000 tons in a tender yesterday from Ukraine, Russia and Romania.