CHICAGO (Dow Jones)–U.S. soybean futures are expected to start at a
28-month high Tuesday as forecasts show little chance for rain in hot, dry
areas of Argentina and raise concerns about dryness developing in southern
Brazil.
Traders predict soybean futures will start 7 to 9 cents a bushel higher at
the Chicago Board of Trade. In overnight electronic trading, soybeans for
January delivery, the nearby contract, ended up 8 cents, or 0.6%, at $13.81 a
bushel after reaching $13.85 1/4, the highest price for a front-month contract
since August 2008. Soybeans for March delivery, the most active contract,
advanced 7 3/4 cents, or 0.6%, overnight to $13.92 1/4.
Futures prices rose as forecasts called for hot, dry weather to stress crops
in Argentina for at least another week. Unfavorable weather recently has
sparked concerns about tight world supplies of soybeans, as Argentina is the
world’s third-largest soybean exporter and the leading exporter of soy
products.
Export business may shift to the U.S, the world’s top soybean exporter, if
crops in South America fall short. Demand for U.S. soybeans already has been
red-hot, with China, the world’s largest soybean importer, snapping up the
oilseed at a record pace.
“Concern continues to build regarding the weather for the corn and soybean
crops in Argentina as more days with heat and dryness are recorded,” private
forecaster Freese-Notis Weather said Tuesday.
Traders are keeping an eye on conditions in southern Brazil, as drier
weather during the next week is expected to deplete soil moisture, according to
Telvent DTN, a private weather firm. Brazil is the world’s second-largest
exporter of soybeans.
Soybeans will be harvested in Argentina and Brazil this spring. Planting is
mostly finished, with about three-quarters of the crop sown in Argentina.
By Tom Polansek
Of DOW JONES NEWSWIRES