BLBG:Soybeans Gain as Brazil Dryness May Cut Crop Amid Rising Demand
Soybeans rose for a second day in Chicago on speculation dry weather in southern Brazil will erode crops of the oilseed before the harvest at the same time that demand for U.S. supplies is increasing.
Brazil’s Rio Grande do Sul and Parana states may be mostly dry today and tomorrow, with some scattered showers on Jan. 25 giving way to more dryness during the weekend, forecaster DTN said. Two percent of the country’s soybean crop, expected to be the world’s largest, has been harvested, researcher Celeres said Jan. 21. In the U.S., about 48.1 million bushels were inspected for export in the week ended Jan. 17, 16 percent more than a week earlier, the Department of Agriculture said yesterday.
“We’ve got South American weather now starting to affect the price quite a bit,” William Adams, a fund manager at Resilience AG, said by telephone from Zurich. “The exports were a little bit higher than expected in soybeans.”
Soybeans for delivery in March advanced 0.2 percent to $14.5425 a bushel at 5:13 a.m. on the Chicago Board of Trade. Prices yesterday touched $14.6075, the highest level since Dec. 19, and gained 1.6 percent by the close.
Corn for delivery in March advanced 0.2 percent to $7.2975 a bushel and wheat for the same delivery month rose 0.2 percent to $7.805 a bushel. Both grains erased declines. In Paris, milling wheat for delivery in March fell 0.3 percent to 252.25 euros ($336.20) a metric ton on NYSE Liffe.
To contact the reporter on this story: Whitney McFerron in London at wmcferron1@bloomberg.net.
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
