2023-12-12 00:05:38
© Reuters. Soybean field in Porto Nacional, Tocantins 03/24/2018 REUTERS/Roberto Samora
By Brendan O’Brien
CHICAGO (Reuters) – U.S. futures rose on Monday as concerns resurfaced that dry conditions in Brazil are having a detrimental effect on crops in the world’s biggest producer.
The market in Chicago also received support after the US government announced another export sale.
Futures tumbled after recovering last week to four-month highs, while the market was pressured by weakness in wheat.
Soybeans rose 2.5% to $13.36 a bushel — its highest close in December — on weather forecasts showing that the northern half of Brazil may not yet be receiving enough rain to offset dry conditions that are threatening plantations.
The country is still on track to produce its biggest crop ever, according to analysts and the US government.
“We have some real potential issues with the Brazilian crop right now,” said Dale Durchholz, commodities analyst at Grain Cycles. “I think soy’s strength is coming from there”
Soybeans were also supported by the US Department of Agriculture, which confirmed private sales of 132,000 metric tons for delivery to unknown destinations in the 2023/24 marketing year, which began September 1.
Most active wheat fell 3.5%, or 22.25 cents, to $6.095 a bushel, after rising nearly 5% last week and reaching highs not seen since August. Corn fell 0.8%, or 4 cents, to $4.815 a bushel.
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