Soybeans rose in Chicago, heading for a fifth weekly gain, on speculation the U.S. government will cut its production estimate after heat and dryness harmed crops in the world’s biggest grower.
The U.S. soybean harvest may be 3.13 billion bushels, 3.7 percent below August’s estimate, a Bloomberg survey of analysts showed before the Department of Agriculture updates forecasts Sept. 12. Futures surged 13 percent last month as hot weather in the Midwest threatened yields. Temperatures early next week may top 90 degrees Fahrenheit (32 degrees Celsius) in the Midwest, including in top growers Iowa and Illinois, QT Weather said.
"Weather forecasts for the U.S. Midwest still remain unfavorable for soybean production, with above-average temperatures forecast over the next fortnight, leaving the market concerned that soybean yields could decline further," Paul Deane, an agricultural economist at Australia & New Zealand Banking Group Ltd. in Melbourne, wrote in a note.
Soybeans for delivery in November added 0.3 percent to $13.715 a bushel by 6:36 a.m. on the Chicago Board of Trade, poised to advance 1.1 percent this week. A fifth weekly increase would be the longest winning streak for the most-active contract since May.
About 54 percent of U.S. soybeans were rated in good-or- excellent condition as of Sept. 1, down from 58 percent a week earlier, according to the USDA.
Corn for delivery in December advanced 0.4 percent to $4.63 a bushel. Futures are still heading for a 3.9 percent drop this week, the first weekly loss in four. The USDA may cut its forecast for U.S. corn production to 13.64 billion bushels, 0.9 percent below August’s estimate while still the highest on record, according to Bloomberg’s survey.
Wheat for delivery in December gained 0.7 percent to $6.445 a bushel, narrowing a weekly loss. In Paris, milling wheat for delivery in November added 0.3 percent to 188 euros ($246) a metric ton on NYSE Liffe. Egypt, historically the world’s largest wheat buyer, is seeking the grain in a tender today for November delivery, according to its state-run buyer.
--With assistance from Jeff Wilson in Chicago. Editors: Sharon Lindores, Nicholas Larkin
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