Soybeans Climb as U.S. Shipments Increase; Corn, Wheat Advance
Soybeans rose for a second day, rallying from a four-month low, on signs demand for U.S. supply is increasing as dry weather in Brazil and excessive rains in Argentina may hurt crops in the world’s biggest growing region.
The contract for January delivery gained as much as 1.3 percent to $14.2575 a bushel on the Chicago Board of Trade, before trading at $14.23 at 3:33 p.m. in Singapore. Futures fell to as low as $13.9125 yesterday, the cheapest since June.
Soybeans inspected at U.S. ports before shipment gained 6.8 percent to 64.1 million bushels in the week ended Nov. 8, from a week earlier, the U.S. Department of Agriculture said yesterday. Crushing by companies in the National Oilseed Processors Association probably rose 3.6 percent to 146 million bushels in October from a year earlier, according to the average estimate of eight analysts compiled by Bloomberg. The group known as NOPA, releases its report in Washington today.
“It’s still supportive at least over the next few months,” Victor Thianpiriya, an agricultural analyst at Australia & New Zealand Banking Group Ltd., said from Singapore today, referring to strong demand for U.S. supplies. The crop in South America will also set the price direction, he said.
In Argentina, the third-largest grower and exporter, about 11 percent of the crop was planted as of Nov. 8, behind last year’s pace of 25 percent, after rain made the land too wet for farm machinery, Oil World said yesterday.
In Brazil, predicted by the USDA to be the largest grower this marketing year, recent rain was insufficient to help crops in Mato Grosso, Mato Grosso do Sul, Goias, Minas Gerais and Bahia, said Oil World. Some areas of Mato Grosso have not had any “noticeable rainfall” in t two to four weeks, it said.
Corn for March delivery rose 0.4 percent to $7.29 a bushel in Chicago, while wheat for delivery in the same month added 0.2 percent to $8.6775 a bushel.
An estimated 36 percent of winter wheat, the most-common U.S. variety, was rated good or excellent as of Nov. 11, down from 39 percent a week earlier, the USDA said yesterday. A year earlier, 50 percent got the top ratings.