BOTTOM LINE WEATHER POINTS
– Drought in Argentina helped soybean prices rise in U.S. trading.
– Argentina is the third-largest producer of soybeans in the world.
– Increased Chinese soybean demand also aided in spurring prices.
– Drought in Argentina helped soybean prices rise in U.S. trading.
– Argentina is the third-largest producer of soybeans in the world.
– Increased Chinese soybean demand also aided in spurring prices.
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Despite dreary market conditions, Chicago soybean futures rose on Wednesday as dry weather in key parts of Argentina and high Chinese demand spurred prices. Argentina is the third-largest producer of soybeans in the world.
Chicago Board of Trade January soybeans rose 5-1/2 cents or 0.61 percent to $9.07-1/2 per bushel on Wednesday, according to Reuters.
"Temperatures have been averaging 4-5°F above normal in Santa Fe, Argentina, the leading soybean province, and Cordoba has already racked up 8 days of 86°F plus temperatures in November. Hot temperatures and very low humidity are also sapping field moisture at an alarming rate," said Gail Martell, Senior Agriculture Analyst with Storm Exchange.
Drought-stricken fields are forcing Argentina farmers to delay 2008-09 soy sowing, which led to the moderate boost in U.S. soybean trading.
"If you look at the Chinese market it is all positive today; beans, bean oil, soymeal, palm oil are all up," said one dealer with a Singapore-based international trading house on Wednesday.
The dry weather pattern is expected to continue for another 10 days in Argentina before heavy rains at the end of November alleviate drought, said Martell.
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