BLBG: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 1.2 percent to $14.2425 a bushel on the Chicago Board of Trade, before trading at $14.1875 at 1:13 p.m. Singapore time. Futures fell yesterday to $13.9125, the lowest level 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 soybean crop was planted as of Nov. 8, behind last year’s pace of 25 percent, after excessive rains made the land too wet for farm machinery, Oil World said yesterday. Planting of soybeans, corn and sunflowers was 3.4 million hectares behind last year’s “already slow pace,” the Hamburg- based researcher said.
Corn, Wheat
In Brazil, predicted by the USDA to be the largest grower this marketing year, recent rainfall was insufficient to help fields in the states of Mato Grosso, Mato Grosso do Sul, Goias, Minas Gerais and Bahia, resulting in some planting delays, said Oil World. Some areas of Mato Grosso have not had any “noticeable rainfall” in the past two to four weeks, it said.
Corn for March delivery in Chicago added 0.1 percent to $7.27 a bushel, while wheat for delivery in the same month was little changed at $8.6525 a bushel.
The winter-wheat crop in the U.S., the largest exporter, deteriorated as rains missed the driest region of the Great Plains, the government said, slowing plant germination and curtailing growth.
An estimated 36 percent of winter wheat, the most-common domestic variety, was rated good or excellent as of Nov. 11, down from 39 percent a week earlier, the USDA said yesterday. About 22 percent was in poor or very poor condition. A year earlier, 50 percent got the top ratings and 14 percent was in the bottom two categories.
To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
