soybean brokers

soybean futures

September 25th, 2013

Soybean futures rose for a second day after a U.S. government report showed rains in the Midwest last week failed to bolster crop conditions in the country, last year’s biggest producer of the oilseed.

Crop conditions were unchanged as of Sept. 22 from a week earlier, with 50 percent of soybeans rated good or excellent, U.S. Department of Agriculture data show. Rain later this week in west and central areas may be too late to aid crops, forecaster DTN said.

Soybean futures for November delivery rose 0.6 percent to $13.1975 a bushel on the Chicago Board of Trade at 5:40 a.m. Prices dropped to $13.0525 yesterday, the lowest since Aug. 23, before closing 0.4 percent higher.

“Planting delays at the start of the season resulted in the delay in development,” Joyce Liu, an analyst at Phillip Futures Pte in Singapore, said in an e-mail today. “We expect a downward revision to USDA’s estimates in the next supply-demand report. Recent rainfall in the U.S. Midwest was also unlikely to significantly improve the soybeans crop.”

While the USDA expects this year’s harvest to be 4.4 percent larger than last year, the agency cut its forecast on Sept. 12 as drought conditions expanded in parts of the Midwest.

Soybeans are heading for the first quarterly advance in a year after climbing for six of the past seven weeks amid hot, dry weather in the Midwest. Since the start of the year, the price has declined 6.3 percent.

Corn for December delivery added 0.4 percent to $4.5075 a bushel in Chicago. Wheat for delivery in December rose 0.8 percent to $6.6325 a bushel in Chicago, while milling wheat for November delivery traded on NYSE Liffe in Paris added 0.8 percent to 189 euros ($255.32) a ton.

- Phoebe Sedgman in Wellington at Bloomberg.