Chicago | Reuters — U.S. soybean futures jumped to their highest price since August on Tuesday on concerns about unfavorable crop weather in top supplier Brazil, analysts said.
A rally to contract highs in soymeal futures helped lift the soybean market.
Dryness in northern and central Brazil and excessive rains in southern areas threaten soy and corn production in the South American agricultural powerhouse, analysts said.
“The heat wave continues over Brazil,” said Charlie Sernatinger, executive vice president for Marex Capital Markets.
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Already some analysts have downgraded their production estimates, with AgRural lowering its forecast for Brazil’s 2023/24 soybean crop on Monday. The agribusiness consultancy said further cuts are possible before the end of the month depending on the weather.
January soybean futures SF24 on Tuesday rose 7-1/4 cents to close at $13.89-3/4 per bushel at the Chicago Board of Trade, and the most-active Sv1 contract hit its highest price since Aug. 31.
Strong demand helped lift CBOT soymeal futures, after drought reduced output in exporter Argentina. December soymeal SMZ3 finished $4.50 higher at $473.60 per short ton and set a contract high of $475.10.
“The United States is becoming the only source of meal in the world market until the next South American crop is crushed in early 2024,” said Karl Setzer, partner at Consus Ag Consulting.
U.S. soybean crushing likely reached an all-time monthly high in October, analysts said ahead of a monthly National Oilseed Processors Association report due on Wednesday.
In other CBOT markets, December corn CZ3 settled up 1 cent at $4.78-1/4 per bushel, while December wheat WZ3 slid 7 cents to $5.72 per bushel.
Exporters sold 101,745 tonnes of U.S. corn to Mexico for 2023/2024 delivery, the U.S. Department of Agriculture said.
The wheat market, meanwhile, largely shrugged off an unexpected fall in weekly USDA ratings for the U.S. winter wheat crop, with the condition rating still at a four-year high.
–Reporting by Brendan O’Brien and Tom Polansek in Chicago. Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra.
