Soybeans Extend Advance on U.S. Frost Concerns, Export Demand Soybeans extended the biggest gain in three weeks on concern that crops in the U.S., the world’s largest grower, may be susceptible to frost and amid sustained export sales. Corn and wheat also advanced The contract for November delivery climbed as much as 0.5 percent to $11.8975 a bushel on the Chicago Board of Trade and was at $11.865 by 11:45 a.m. in Singapore. Prices gained 1.6 percent yesterday, the most since July 16, and are set to advance 0.4 percent this week. The Standard & Poor’s GSCI Index of eight agricultural commodities tumbled 19 percent this year as corn lost 34 percent and soybeans dropped 16 percent on expectations U.S. crops will be the biggest ever. Much of the U.S. soybean crop was planted late because of wet weather in May, and development has been slowed as temperatures in July were below average. “There are some concerns about soybeans having some frost issues going forward,” said Graydon Chong, a grains and oilseed analyst at Rabobank International in Sydney. “The market is squeezed a little bit higher as a result of the short-term production concerns and strong demand.” U.S. export sales of soybeans were 1.1 million tons in the week ended Aug. 1, exceeding 1 million tons for a second week, government data show. Farmers may harvest a record 3.42 billion bushels, helping boost world inventories 20 percent from a year earlier to an all-time high, the U.S. Department of Agriculture said in July. The agency will update its estimates on Aug. 12. “The weather has been cooler than normal here in the past two weeks, so people are saying ‘what if we get an early frost,’” Dewey Strickler, the president of Ag Watch Market Advisers in Franklin, Kentucky, said yesterday. “If we have an early frost, yields could be clipped.” Corn for December delivery rose 0.4 percent to $4.6175 a bushel, trimming a fourth weekly loss. Wheat for delivery in December advanced 0.3 percent to $6.5575 a bushel.
Posted on: Fri, 09 Aug 2013 05:09:00 +0000
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