Soybean Futures Options Trading
CALL 1-888-456-8090 TO BEGIN TRADING TODAY!INTERNATIONAL INVESTORS CALL 1-541-773-5741
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Soybean Futures Options TradingCALL 1-888-456-8090 TO BEGIN TRADING TODAY!INTERNATIONAL INVESTORS CALL 1-541-773-5741 |
Soybean Futures: Soybeans, Corn Surge as Hot, Dry Weather in U.S. Midwest May Damage Crops July 15th, 2010 soybean futures rose to the highest price since early May and corn futures surged to six-month highon mounting concern that hot, dry weather in the next six weeks may damage crops in the U.S., the world’s biggest producer and exporter. In the Midwest, high temperatures in the western part of the region and mostly dry weather in the eastern area will deplete soil moisture in the next two weeks, said Donald Keeney, the senior agricultural meteorologist for MDA EarthSat Weather in Rockville, Maryland. The pattern will continue in the central Midwest through August, he said. “The market is adding a weather-risk premium,” said Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana. “The crops will need rains fairly quickly” to prevent significant yield damage, Gerlach said. Corn futures for December delivery rose 9 cents, or 2.3 percent, to $4.0525 a bushel on the Chicago Board of Trade. Earlier, the price reached $4.10, the highest level for a most- active contract since Jan. 12. The grain has soared 18 percent since June 29, the day before the government said U.S. farmers planted less this year than they had planned. Soybean futures for November delivery jumped 26 cents, or 2.7 percent, to $9.88 a bushel. Earlier, the price reached $9.8975, the highest level since May 5. The oilseed has gained 9.5 percent this month after the government said U.S. reserves as of June 1 fell to a six-year low. Shrinking inventories may raise costs for companies including hog processor Smithfield Foods Inc. and poultry producer Pilgrim’s Pride Corp. and ethanol maker Archer Daniels Midland Co. Soybean Potash, MonsantoShares of fertilizer companies Potash Corporation of Saskatchewan Inc. and Agrium Inc. and seed manufacturers Monsanto Co. and DuPont Co. rose as higher corn and soybeans may encourage farmers to plant more next year.The National Weather Service said today that August will be warmer than usual in most of the Midwest, increasing the risk to crops, said Marty Foreman, a senior economist at Doane Advisory Services Co. in St. Louis. “If the heat lingers into August, that will change the supply situation very quickly,” Foreman said. “We are on a fence between having a shortage and having an adequate supply.” Soybean futures also rose on increased export sales, including new shipments to China. Foreman said. In the week ended July 8, U.S. exporters sold 678,145 metric tons of corn for delivery before Sept. 1, up 35 percent from a week earlier, the U.S. Department of Agriculture said today. That included 125,200 tons to China, Soybean sales last week more than doubled to 666,467 tons, the most since January, the USDA said. Soybean ‘Positive’ SalesU.S. exporters sold 152,400 metric tons of corn and 238,000 tons of soybeans to unknown destinations for delivery in the year starting Sept. 1, the USDA said today. The agency also reported a shipment of 116,000 tons of soybeans to China.“The Chinese export sales are positive,” Foreman said. “The price risk is still to the upside.” Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government figures show. - Jeff Wilson in Chicago at Bloomberg. Click here for your Free Soybean Futures Trading eGuide |
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