Weather Concerns and Expected Rise in Demand Push Soybean and Oilseed Prices to Multi-Months High
On Wednesday, soybean futures and U.S. grain extended gains to its months high with concerns growing over global weather. The hopes that demand will increase for domestic crops also spurred more buying in the agricultural markets.
Prices of soybean climbed to eight-month high as heavy rains in Argentina have grown concerns over the country's crop harvest and lower output. That could add to the optimistic outlook of an increase soybean exports from the U.S.
The oil seed markets also gained from expectations that U.S. and Argentina farmers will brow the crop in fewer acres than usual in the forthcoming season. The more than expected demand from China for soybean added to the gains. China is the largest buyer of the oilseeds in the world.
In an interview, president of Roach Ag Marketing in Boca Raton, Florida, Brian Roach said "Crop estimates are trending lower both in Brazil for corn and Argentina for soybeans at a time when we largely thought those crops were made and soon to be put away."
At the Chicago Board of Trade, soybean futures for May delivery climbed 2.5 percent or 24 1/4 cents to $10.09 3/4 a bushel. That is the highest noted price seen since August 11, last year.
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