BLBG:Soybeans Advance to Two-Week High on South American Crop Concern
Soybeans climbed to the highest level in two weeks on concern that planting delays in South America may curb production. Wheat advanced on the worst U.S. winter-wheat conditions in at least 27 years.
Soybeans for January delivery gained as much as 1.1 percent to $14.405 a bushel on the Chicago Board of Trade, the highest price for a most-active contract since Nov. 12, and traded at $14.375 at 12:16 p.m. in Singapore. Prices are set to climb for a third day, the best streak since the period to Nov. 1.
In Brazil, 74 percent of the soybean crop was planted, from 81 percent a year earlier, researcher Celeres said yesterday. About 37 percent of Argentine soybeans were sown, from 47 percent, the Buenos Aires Cereals Exchange said Nov. 22. Soybeans surged to a record in September after the worst U.S. drought in half a century parched fields. Brazil, the U.S. and Argentina are forecast to be three largest soybean growers this year, according to the U.S. Department of Agriculture.
“The world is watching the South American corn and soybean crops at the moment,” Michael Creed, an agribusiness economist at National Australia Bank Ltd., said by phone from Melbourne. “We need a big South American crop to allay concerns about tightness across the grains and oilseeds complex.”
Storms expected later this week will continue to delay soybean and corn planting, while raising disease risk for wheat, Telvent DTN Inc. said in a report yesterday.
In the U.S., winter-wheat conditions declined and were the worst since 1985, the USDA said yesterday, as dry, cold weather slowed germination and early plant growth. An estimated 33 percent of the crop was rated good or excellent as of Nov. 25, from 34 percent last week and 52 percent a year earlier.
Wheat for March delivery rose as much as 0.6 percent to $8.6875 a bushel and was at $8.68. The price reached $8.69 yesterday, the highest since Nov. 15. Corn for March delivery advanced 0.4 percent to $7.5425 a bushel.
To contact the reporter on this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net;
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
