Monday 26 November 2012

Soybeans Extend Best Week in Three Months on South American Crop

By Phoebe Sedgman - Nov 26, 2012
Bloomberg
Soybeans advanced, extending the biggest weekly gain in three months, on concerns dryness in Brazil and rain in Argentina may threaten supply as demand increases in China, the world’s biggest buyer.

The contract for January delivery gained as much as 0.5 percent to $14.2575 a bushel on the Chicago Board of Trade and traded at $14.235 at 1:01 p.m. in Singapore. Prices climbed 2.6 percent last week, the best performance since the five days ended Aug. 24.

The soybean crop in Argentina, the world’s third-biggest exporter, is 37 percent planted compared with 47 percent a year ago, the Buenos Aires Cereals Exchange said Nov. 22. China bought 16.8 million metric tons of U.S. soybeans since Sept. 1, 14 percent more than a year ago and 62 percent of total U.S. shipments, U.S. Department of Agriculture data show.

“There’s still some concern about dryness in northern Brazil and some wet weather that’s delayed plantings in Argentina,” Victor Thianpiriya, an analyst at Australia & New Zealand Banking Group Ltd., said by phone from Singapore. “With the break in prices we’ve seen since the September highs, we’ve started to see demand come back.”

Soybeans surged to a record in September after the worst U.S. drought in a half century parched fields. Since then, prices have slumped 20 percent, trimming this year’s gains to 18 percent. Oil World, a Hamburg-based researcher, cut its output- growth estimate for the region by 8 percent on Nov. 20, citing too much rain in parts of Argentina and too little in Brazil.

Corn for March delivery rose 0.2 percent to $7.51 a bushel after dropping as much as 0.5 percent. Prices reached $7.53 on Nov. 23, the highest since Nov. 9. Wheat for March delivery advanced 0.2 percent to $8.63 a bushel.

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