soybean futures optons

soybean futures advance

May 3rd, 2013

Soybean futures jumped for the first time in four days on speculation that U.S. farmers will not increase the amount of the oilseed they plant as technological advances make it possible to seed corn later in the year.

Rain is expected in parts of the Midwest, delaying corn planting, DTN said in a report today. Wet weather next week will “keep planting progress slow,” the forecaster said. Technological advances including “short-season” plants that grow faster than normal will allow farmers to seed corn, even if it’s planted later, said Brian Hoops, the president of Midwest Market Solutions in Springfield, Missouri.

“With the technology and the hybrids we have, we will see corn acres get into the ground,” Hoops said in a telephone interview. “Back 20 years ago we would’ve seen the jump to soybeans, but now we have short-season hybrids. Not a lot of acres are going to be shifted from corn.”

Soybean futures for July delivery gained 1.6 percent to $13.9375 a bushel at 10:46 a.m. on the Chicago Board of Trade, erasing a weekly decline. The price through yesterday had dropped 0.6 percent this week.

Corn futures for July delivery slipped less than 0.1 percent to $6.6175 a bushel in Chicago. Through yesterday, prices rose 6.8 percent this week after jumping by the exchange limit on April 29.

- Tony C. Dreibus in Chicago at Bloomberg.