Soybean prices soared Tuesday while corn and wheat gained on dry South American weather and short covering following losses last week, according to analysts. Meanwhile, USDA reported a double-digit jump in yearly exports across the board.
January soybeans soared 25 ¾ cents at $10.14 ¾ after dropping below $10 last week. March corn jumped 9 ¼ at $3.55. Chicago March wheat went up 16 cents at $4.09 2/5. Kansas City March HRW wheat rose 12 2/5 cents at $4.18 3/5.
“Soybeans are trading sharply higher today on news that northeast Brazil is is trending drier, and the forecast is hot and dry for the next 10 days,” says DuWayne Bosse of Bolt Marketing in Britton, S.D.
That area represents about 35 percent of Brazil’s first crop corn production and 25 percent of its soybean production, he says. And while the dryness is not robbing the area of production just yet, “the trade is nervous and willing to put a weather premium into the market, especially after last week’s 50 cent loss,” says Bosse.
Meanwhile, heavy rains fell in Argentina, which stopped a drought but also slowed down planting, Bosse says, noting that about 24 percent of Argentina still is unplanted, with some of the fields under water.
Fund liquidation of short positions helped to boost wheat prices, he says.
Another analyst,Andrew Shissler, partner at S&W Trading, in Downers Grove, Ill., held a similar view.
“The dryness in northeastern Brazil … can put premium back pretty quickly in the market,” he says “Also, you are seeing year-end short covering in corn and wheat,” he says.
Underscoring global demand, USDA reported Tuesday that soybean year-to-date export inspections rose 19.2 percent, to 31.4 MMT for the week ending on Dec. 22. Corn export inspections jumped 79.7 percent to 16.4 MMT and wheat export inspections went up 28 percent to 15.1 MMT for the year-to-date compared to a year ago.
Weekly soybean export inspections slid by 2 percent to 1.71 MMT. B
ut weekly corn export inspections jumped 21 percent to 970,506 MT and weekly wheat inspections rose 8 percent to 520,975 MT for the week ended Dec. 22.