BLBG:Soybeans Near Two-Week High as Storms May Delay Argentine Sowing
Soybeans traded near the highest level in more than two weeks amid concern storms in Argentina will delay planting.
The contract for January delivery gained 0.2 percent to $14.4975 a bushel on the Chicago Board of Trade before trading at $14.475 at 12:10 p.m. in Singapore. Prices reached $14.5675 yesterday, the most expensive since Nov. 9.
Moderate or heavy storms are expected in Argentina in the next two days, delaying the planting of soybeans and corn and increasing the risk of wheat disease, Telvent DTN said yesterday. Futures surged to a record $17.89 in September after the worst U.S. drought in a half century parched crops. In Brazil, the second-biggest exporter, showers later this week may help maintain more favorable conditions, Telvent DTN said.
“Brazil’s got to have a pretty much perfect season and the logistics need to work well enough to get the beans out,” said Victor Thianpiriya, an analyst at Australia & New Zealand Banking Group Ltd. in Singapore. “Stocks in the U.S., which is currently the global supplier, are going to be extremely tight come March.”
Argentina has sown 37 percent of its soybeans, from 47 percent in 2011, the Buenos Aires Cereals Exchange said Nov. 22. In Brazil, 74 percent of the soybean crop was planted, against 81 percent a year earlier, researcher Celeres said Nov. 26. The nation is set to overtake the U.S. as the largest shipper this season. U.S. exporters sold 290,000 tons of soybeans to China, the Department of Agriculture said yesterday.
Wheat for March delivery dropped as much as 0.5 percent to $8.8675 a bushel and traded at $8.8975. Futures reached $8.955 yesterday, the most expensive since Nov. 12. Corn for March delivery fell 0.2 percent to $7.6275 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
