Sept. 3 (Bloomberg) -- Soybean futures jumped the most in a week on speculation that a lack of rain in the past 30 days damaged prospects for yields in the U.S., the world’s biggest producer. Wheat and corn dropped.
Iowa, Illinois and Indiana had the driest August since before 1895, according to preliminary data from T-Storm Weather LLC in Chicago. Temperatures will average as much as 10 degrees Fahrenheit above normal through Sept. 11, increasing stress on crops, the company said in a report. Last month, soybean prices jumped 13 percent, the most since July 2012.
“The dry weather is going to cut yields,” Jim Gerlach, the president of A/C Trading Co. in Fowler, Indiana, said in a telephone interview. “Soybeans are very resilient plants, but if it doesn’t rain soon, they will do a poor job of filling pods.”
Soybean futures for November delivery rose 2.2 percent to close at $13.8675 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest gain for a most-active contract since Aug. 26. Soybean-meal futures for December delivery jumped 3.6 percent to $438.90 for 2,000 pounds of the animal feed.
As much as 40 percent of the Midwest soybean crop is at risk of additional yield losses this week, the Commodity Weather Group LLC said in a report today. The weather and crop forecaster cut its U.S. soybean-yield forecast to 41.7 bushels an acre on Aug. 30, down from 44.1 bushels previously. Yield estimates were reduced more than 10 percent in Iowa, Illinois, Missouri, Wisconsin and South Dakota.
About 58 percent of the crop was in good-to-excellent condition in the week ended Aug. 25, down from 62 percent a week earlier, government data showed on Aug. 26. The top ratings probably declined as much as 5 percentage points in the past week, Gerlach said.
Wheat futures for December delivery fell 1 percent to $6.4725 a bushel, the fifth straight decline. Earlier, the grain climbed as much as 1.5 percent.
Corn futures for December delivery dropped 1.4 percent to $4.7525 a bushel. Earlier, the price rose as much as 2.4 percent.
In the U.S., corn is the biggest crop, followed by soybeans, hay and wheat, government data show.
--Editors: Millie Munshi, Thomas Galatola