Farm Progress is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Serving: United States
Soybeans close near high of season due to dry weather

Soybeans close near high of season due to dry weather

August soybeans finished up $0.53 1/2 at $15.83, $0.02 1/2 off the high and $0.38 1/2 up from the low. November soybeans closed up $0.51 3/4 at $15.26 1/2. This was $0.33 1/2 up from the low and $0.02 1/2 off the high.

November soybeans gapped higher at the opening bell and seemed to gain in strength through the day to finally close near the highs of the session. The July contract gained on the August and November contracts after no deliveries were made. Soybean meal and oil both traded sharply higher into the closing bell.

Continued concern over decreasing new crop soybean yields due to blistering temperatures this week supported the soybean market to new highs on the day. The forecast calls for cooler temperatures next week and a chance for better rainfall in some areas, but confidence in those forecasts remain low. Afternoon weather maps call for a little warmer 1- to 5-day forecast for the northern U.S. and extreme heat is expected to stick around for another 3 to 4 days in central and southern Midwest. Changes also include a chance for better rainfall in the Midwest and western U.S. plains in the 6- to 10-day map.

Brazil's government announced that their 2011/2012 soybean crop would amount to 66.37 million tons, which is unchanged from their last estimate. Outside markets offered minimal resistance to soybeans, as the U.S. dollar surged over 1% on the day and stocks were marginally lower. Traders continue to anticipate demand shifting to the U.S. market following one of the worst Brazilian droughts in years.


Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.