Last week November 2013 soybeans (CBOT:SX13) opened at $12.72¾ and closed at $13.28.Over the past week, and especially yesterday with the weekend weather forecast, the large moves up in price are being caused by hot, dry weather over much of the grain belt. Soybeans at this time are much more vulnerable than corn, as corn has already passed its pollination stage. Soybeans are still podding and adding beans to the pods. The hot, dry weather has the potential to affect crop yields. And these are the types of fears that move grains in the midst of “weather markets.”
And looking at the USDA’s Crop Progress-Soybean Condition report, which is below, we will want to watch for increases to Very Poor, and Poor, which we saw this past week now with Very Poor at 3% Poor at 10%. This will help gauge if in fact yields may be affected. Of course actual yields will not be known until harvest. So if you lie in the grain belt like I do here in Chicago, enjoy the heat, stay cool and have a prosperous trading week.