SYDNEY, Sept 3: U.S. Soybeans rose more than 2 percent on Tuesday as updated weather models forecast a hot, dry weather across the Midwest, raising fears of potential yield loss.
Corn climbed, supported by the updated weather models, while wheat edged higher on the strength of corn.
Chicago Board of Trade soybeans added 2.2 percent to $13.86-3/4 a bushel, having jumped as high as $14.04-1/4 a bushel. That was near the 11-month high of $14.09-1/2 a bushel hit last week.
Soybeans closed down 0.8 percent on Friday. U.S. Markets were closed on Monday for the Labour Day holiday.
Updated weather models called for hotter temperatures and less rain from next week across the U.S. Midwest. [https://apac1.Pointcarbon.Cp.Extranet.Thomsonreuters.Biz/trading /agsdashboard/na/usa/midwest/?sdtc=1
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‘The market is looking at the forecast, which is expected to see a return to the hot, dry weather after some limited relief from light showers over the weekend,’ said Luke Mathews, agricultural commodities strategist at the Commonwealth Bank of
Australia.
The forecasts raised fears of potential yield loss, with much of the crop in the critical stage of development, traders said.
U.S. Soybeans have suffered as a result of prolonged unfavorable weather, forcing some forecasters to lower production estimates.
The Commodity Weather Group, a U.S.-based weather forecasting firm, lowered its forecast of the average U.S. 2013 soybean yield to 41.7 bushels per acre, down 2.4 bushels from its previous forecast, trade sources said on August 30.
The U.S. Department of Agriculture in its most recent crop condition report on August 26 rated 58 percent of the U.S. soybean crop as good to excellent, down 4 percentage points from a week before.
A large soybean harvest is needed to replenish inventories that are estimated at a nine-year low.
Corn also drew support from the updated weather model, traders said.
December corn rose 0.8 percent to $4.85-3/4 a bushel, having closed little changed in the previous session.
December wheat rose 0.11 percent to 6.54-3/4 a bushel after closing flat on Friday.
Argentina’s recently planted wheat fields need more rains to ensure good yields, observers said, at a time of high global demand and dwindling stocks at home.
(AGENCIES)
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