Soybeans Set for Biggest Monthly Rise Since 2012

10:23AM Oct 31, 2014
web Brazil soybeans trucks
( )

Soybeans climbed to head for the longest run of weekly gains since last year and the biggest monthly advance since 2012 on concern dry weather will hamper planting in Brazil, the world’s top exporter.

The contract for January delivery added as much as 0.9 percent to $10.3925 a bushel on the Chicago Board of Trade, and was at $10.3425 by 10:55 a.m. in Singapore. Futures touched $10.5925 yesterday, the highest since Aug. 18. Prices, rising for a fifth week, are set to increase 13 percent this month, the first such gain since April and the most since July 2012.

World soybean production will total 307 million tons in 2014-2015, less than last month’s forecast of 310 million tons, the London-based International Grains Council said yesterday. Brazil is contending with hot, dry conditions that have discouraged farmers from planting, Hamburg-based researcher Oil World said Oct. 28, reducing its global output estimate by 3 million tons to 307.8 million tons.

In Brazil, “planting delays for soybeans remain supportive of prices near term,” analysts including Daniel Hynes, senior commodity strategist at Australia & New Zealand Banking Group Ltd., wrote in a note today.

Brazil will export 47 million tons in 2014-2015, the U.S. Department of Agriculture’s Foreign Agricultural Service said in a report dated Oct. 27. That’s 1 million ton less than earlier estimate because of planting delays and slow pace of sales, it said. The delays pose downside risks to Brazil’s corn and soybean production, Morgan Stanley said Oct. 28.

Corn for delivery in December lost 0.1 percent to $3.7375 a bushel. Prices reached $3.81 yesterday, the highest since Aug. 18, and are up 17 percent in October for the first monthly gain since April and the biggest rise since July 2012.

Wheat for December delivery increased 0.2 percent to $5.3725 a bushel. Prices reached $5.455 yesterday, the highest since Sept. 3, and are set to gain 12 percent this month for the largest advance since March.