Soybean futures advanced for a second day after the condition of the U.S. crop worsened last week amid continued hot, dry weather across the Midwest, a government report showed. Wheat futures also increased. November-delivery soybeans rose as much as 0.6 percent to $13.705 a bushel on the Chicago Board of Trade and were at $13.6975 at 10:11 a.m. in Singapore. Futures climbed 36 percent in the past year. About 60 percent of soybeans in the top 18 producing states were in good or excellent condition as of July 31, down from 62 percent a week earlier and 66 percent a year ago, the U.S. Department of Agriculture said in a report yesterday. About 77 percent of the plants were flowering, from 60 percent a week ago. “Weather is playing the biggest concern now, they’re just afraid that it will damage some of the crops,” Lynette Tan, an analyst at Phillip Futures Pte., said by phone from Singapore today. “For corn especially, the heat-wave has been the talk of the town for the past two weeks.” An estimated 62 percent of the corn crop had top ratings, down from 71 percent a year earlier. About 83 percent of the plants were reproducing, up from 65 percent a week earlier, the USDA said. Heavy Rains The weather pattern in early August isn’t expected to be as hot or as dry as last month, although some above-normal temperatures and areas of dryness are expected to continue in parts of the southern and eastern Midwest, Telvent DTN Inc. said in a forecast yesterday. Heavy rains are expected between Colorado and Indiana over the next five days, QT Weather said in a report yesterday. Agricultural markets were also supported as the House approved legislation to raise the U.S. debt limit by at least $2.1 trillion and cut federal spending by $2.4 trillion or more, one day before a threatened default. The House voted 269-161 for the plan negotiated by leaders and President Barack Obama over the weekend. Ninety-five Democrats voted in favor and 66 Republicans in opposition. The measure goes to the Senate for a final vote planned today. “For the past few days, even though weather was the underpinning factor, all investors had the debt ceiling on their minds, and we could see most investors were sitting on the sidelines,” Tan said. If the vote is passed by the Senate, there will be “more risk-appetite for commodities.” December-delivery wheat gained as much as 0.9 percent to $7.27 a bushel. Corn for December delivery was little changed at $6.86 a bushel. To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

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