Aug. 26 (Bloomberg) -- Soybeans surged the most since March 2011 as hot, dry weather in the Midwest threatened to curb crop prospects in the U.S, the world’s biggest grower. Corn climbed to the highest price in a month and wheat advanced.
The oilseed gained as much as 4.6 percent to $13.8925 a bushel on the Chicago Board of Trade, the most since March 2011, and traded at $13.8225 by 7:26 a.m. Prices rose 5.5 percent last week, the third straight increase.
Futures lost 2.1 percent this year as the U.S. Department of Agriculture predicted that output may gain 8 percent to 3.26 bushels after drought hurt last year’s harvest. Production may be 3.16 billion bushels after planting delays and unusually cool, dry weather stunted growth, according to the Professional Farmers of America. Hot, mostly dry weather for most of the Midwest in the next seven to 10 days will put added stress on some crops, DTN said Aug. 23.
"The market’s increasingly getting a bit nervous about the soybean crop," said Paul Deane, an agricultural economist at Australia & New Zealand Banking Group Ltd. The forecast from Pro Farmer, as the Cedar Falls, Iowa-based group is known, is "only adding to sentiment," he said by phone today.
"The prediction of continuing hot and dry weather in growing areas of the U.S. is responsible for the rising prices," Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt, said in an e-mailed report. "These conditions could have a significant impact on crop yields, especially since sowing was delayed this year and plants are lagging behind the normal growth pattern."
Corn for December surged as much as 4.7 percent to $4.92 a bushel, the highest since July 23, and was at $4.885. The corn harvest will be 13.46 billion bushels, less than the 13.76 billion estimated this month by the USDA, Pro Farmer said Aug. 23. The group made its projections after a four-day tour last week of 2,600 fields in seven Midwest states.
Wheat for delivery in December rose as much as 2.2 percent to $6.60 a bushel, the most since July 9, and traded at $6.5825.
--With assistance from Swansy Afonso in Mumbai. Editors: Sharon Lindores, Ana Monteiro
To contact the reporter on this story: Phoebe Sedgman in Wellington at email@example.com