CHICAGO: Chicago Board of Trade soyabean futures climbed on Monday as fears mounted that a dry August could damage the crop at a time when strong export sales are eroding US stocks.
August has seen little precipitation across the US Midwest, during a crucial time in soyabean development, leaving traders concerned about diminished yields come harvest.
The most-active soyabean futures contract gained 16-1/2 cents, settling at $9.15-1/4 a bushel, after reaching a high of $9.17-1/2 a bushel, the highest since January 22.
Soyameal futures added $6.60 to end at $305.10 per short ton, while soyaoil gained .44-cent to 31.53 cents per pound.
While scattered rains are forecast in the next two weeks, much of the US Midwest could see crops facing some drought stress if the rains falter, the Commodity Weather Group said.
Scouts on the annual Pro Farmer Midwest Crop Tour said on Monday that corn and soyabean fields in parts of South Dakota and Ohio showed some signs of dry topsoils. But the overall health of the crops were vastly improved from last year.
US soyabean crushings increased to a four-month high in July, according to National Oilseed Processors Association (NOPA) data.
Exporters reported sales of US soyabeans to China eight consecutive business days, though no new sales were reported Monday.
China's chicken producers are pushing ahead with aggressive expansion plans despite a slump in demand due to the coronavirus, which could increase the country's appetite for US soyameal.