MUMBAI: US soybean futures extended gains on Friday to hit their highest level in nearly six weeks on yield concerns after forecasts signalled more dry weather in portions of the Midwest crop belt. US corn and wheat futures also extended Thursday’s rally on the yield concerns.
“Weather models are suggesting that soybeans are unlikely to receive any significant relief from dry weather.
In the last three weeks, there have only been downward revisions in yield prospects,“ said a Mumbai-based dealer with a global trade house.
A stretch of dry weather following planting season has stressed crops across the US Midwest, raising concerns that the forecasted record corn and soybean harvest will fall below expectations.
The US Agriculture Department said that just 59% of the US soybean crop was rated good to excellent as of June 11, the lowest for mid-June since 2008.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.65% at $14.37-1/4 a bushel, as of 0334 GMT, after rising to $14.38-1/4 earlier in the day.
The US soybean crush in May topped most trade estimates and rose to the highest level for the fifth month of the year, according to National Oilseed Processors Association (NOPA) data released on Thursday.
Chicago soybeans edge lower on profit-taking; wheat and corn follow
Wheat rose 0.53% to $6.65 a bushel, while corn was up 0.44% at $5.77 a bushel, after jumping to its peak in nearly two months on Thursday.
Commodity funds were net buyers of CBOT soybean, corn, wheat, soyoil and soymeal futures contracts on Thursday, traders said.
Traders were also monitoring headlines from war-torn Ukraine and the Black Sea grain export region.
The Kremlin said it saw no positive prospects when it came to renewing the Black Sea grain deal given that parts of the accord affecting Russia remained unfulfilled.
South American grain exports are set to overshadow Black Sea shipments this year as doubts grow over a UN-backed Ukraine deal and international traders cut commercial activities in Russia, a top executive with major commodities group Cargill said.
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