Soybeans rose from a one-month low on speculation that dry, warm weather in parts of Brazil will reduce yield potential and increase demand prospects for U.S. supplies. Corn climbed.
Dry weather and temperatures as much as 5 degrees Fahrenheit above normal in the next week will increase stress on crops in central and southeast Brazil, Mike Tannura, the president of T-Storm Weather LLC in Chicago, said in a telephone interview. About 45 percent of the crop has received half the normal rain this month. Brazil is forecast to top the U.S. as the world’s biggest soybean producer for the first time this year.
“Perceptions that weather conditions are ideal in Brazil are starting to be questioned,” Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana, said in a telephone interview. “People are starting to realize there are some problems developing.”
Soybean futures for March delivery rose 1.3 percent to $14.235 a bushel at 10:29 a.m. on the Chicago Board of Trade, heading for the first gain this week. The most-active contract yesterday touched $13.9775, the lowest since Nov. 20. The price jumped 16 percent this year through yesterday after dry weather reduced output in the U.S. to a four-year low.
Corn futures for March delivery advanced 0.7 percent to $7.015 a bushel in Chicago, heading for the first increase this week.
The grain rose on speculation a drop yesterday to a five- month low of $6.875 will spur overseas demand for U.S. supplies, Gerlach said. Imports in China, the biggest consumer and producer after the U.S., surged 57 percent in November from a year earlier and were the highest ever for the month, the Customs General Administration said today.
Prices gained 7.7 percent in 2012 through yesterday as drought reduced U.S. output for a third year.
Corn is the biggest U.S. crop, valued at $76.5 billion in 2011, followed by soybeans, hay and wheat, government figures show.