HAMBURG: Chicago soybean futures rose to their highest in 4-1/2 years on Monday, touching $12 a bushel as dry weather in key suppliers Brazil and Argentina stoked supply concerns.
Corn and wheat also rose, supported by supply worries and brisk demand.
Chicago Board of Trade most-active soybeans rose 1.3% to $11.96-1/2 a bushel at 1150 GMT, close to Monday’s peak of $12.00 a bushel, the highest since June 2016.
Corn rose 1.4% to $4.34-1/4 a bushel, after climbing to its highest since July 2019 of $4.35-3/4 a bushel. Wheat rose 1.2% to $6.06-3/4 a bushel.
"Soybeans are supported by concerns about dry weather in South America, especially Brazil, coupled with tighter U.S. supplies and expectations of more buying by China, ” said Matt Ammermann, StoneX commodity risk manager.
"Brazilian weather is looking dry for the coming week. This may not be too serious in itself alone, but almost perfect South American crop weather is needed to meet expected Chinese buying with U.S. supplies looking small.
"If poor South American crop weather continues the question of soybean demand rationing may have to be raised, ” he added.
Chicago soybean futures forward curve shows prices have jumped for all contracts through to the middle of next year.
Argentine soy planting advanced sharply over the past week after rains in key drought-hit areas, the Buenos Aires Grains Exchange said on Thursday, though much of the country remained dry.
"Corn is also firm on poor South American crop weather, including in Argentina, with more export demand also expected with U.S. corn looking the cheapest in the world, ” Ammermann said.
"Wheat is following strength in soybeans and corn with little impetus of its own apart from continued strong demand.”
Pakistan continued its recent hefty purchasing, buying about 340,000 tonnes of wheat in an international tender on Monday. - Reuters
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