CHICAGO: Chicago Board of Trade soybean futures were higher on Wednesday led by strong cash markets, tight stocks, slow farmer selling and strong soymeal, traders said.
* August soymeal soared to a record high $514.00 per ton on strong cash, tight stocks and as traders buy old-crop futures amid fears of a US soy crop shortfall due to the worsening drought.
* Traders were buying old-crop August soybeans on fears of a shortfall of US soybean supplies amid the worst drought in the US Midwest in over 50 years.
* Midday weather updates on Wednesday indicate more hot, dry weather for the US Midwest, where corn and soybean crops are rapidly deteriorating amid the harshest drought in more than half a century.
* "It's a little wetter for next week in the west and southwest but even if the rains fall they would only be 0.50 inch or less so not much relief and confidence is low in that forecast," said Don Keeney, a meteorologist for MDA EarthSat Weather.
* US Agriculture Tom Vilsack said the worsening Midwest drought will result in sharply higher crop prices, but there is no need yet to seek a reduction in corn-based ethanol production.
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