Soybeans rose to the highest price in almost two weeks in Chicago amid concern that heat and dryness in Argentina will stress crops in the world’s third- biggest producer of the oilseed.
Temperatures in Argentina are forecast to remain "extremely hot" for at least three to four more days, with highs generally exceeding 100 degrees Fahrenheit (38 degrees Celsius) and little chance of rain, DTN wrote in a report today.
"The dry weather conditions in Argentina are causing water stress for soybeans and are somewhat supporting oilseed prices," Paris-based farm adviser Agritel wrote in a market comment today.
Soybeans for delivery in March climbed 0.2 percent to $13.33 a bushel by 7 a.m. on the Chicago Board of Trade after touching $13.3925, the highest for a most-active future since Dec. 11. Prices slumped 5.3 percent this year as the U.S. Department of Agriculture forecast global output will climb to a record 284.9 million metric tons in the 2013-14 season.
There’s "some concern about evolving heat and dryness across Argentina’s soybean-producing region," Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note. The South American country’s harvest will increase 11 percent to 54.5 million tons in 2013-2014, the USDA predicts.
Corn for delivery in March rose 0.1 percent to $4.335 a bushel and wheat for the same delivery month declined 0.2 percent to $6.1225 a bushel, poised for a seventh drop in eight sessions. Milling wheat for delivery in March traded on NYSE Liffe in Paris was unchanged at 205.50 euros ($281.45) a ton.