Feb. 7 (Bloomberg) -- Soybean futures rose, capping the longest rally in almost two years, on speculation that hot, dry weather eroded crop prospects in Brazil, the world’s biggest exporter. Corn gained, and wheat fell.
Adverse weather this week may have reduced soybean yield potential in as much of 40 percent of the Brazil’s growing area, Commodity Weather Group LLC in Bethesda, Maryland, said today in a report. This week, futures in Chicago jumped 3.8 percent, the most since mid-August.
“Heat and dryness in parts of Brazil continues to provide support to the market,” Arlan Suderman, a senior market analyst at Peoria, Illinois-based Water Street Solutions Inc., said in a telephone interview. “Smaller crops could boost demand for U.S. soybeans, further tightening supplies.”
Soybean futures for March delivery rose 0.4 percent to close at $13.315 a bushel at 1:15 p.m. on the Chicago Board of Trade. The oilseed, used to make livestock feed and cooking oil, advanced for the seventh straight session, the longest rally since early March 2012.
Argentina’s output probably will trail forecasts for a record high as excessive rain and fungus diseases cut yields, Eduardo Sierra, the head climatologist at the Buenos Aires Grains Exchange, said today in a telephone interview.
Corn futures for March delivery climbed 0.3 percent to $4.4425 a bushel. This week, the price jumped 2.4 percent, the most since late August.
Wheat futures for March delivery fell 0.6 percent to $5.775 a bushel. This week, the price climbed 3.9 percent, the most since September, after freezing weather damaged U.S. crops last month.
--With assistance from Pablo Gonzalez in Buenos Aires. Editors: Patrick McKiernan, Joe Richter