Soybeans Jump Most in Five Weeks on U.S. Exports, Crop Concerns

Jun 26, 2014 4:05 pm ET

June 26 (Bloomberg) -- Soybean futures climbed the most in five weeks as a jump in U.S. exports added to supply concerns amid declining inventories and flooding in parts of the Midwest region that may curb yields.

U.S. shippers sold 317,200 metric tons for delivery before Aug. 31, the most since the last week of February, the Department of Agriculture said today. Total sales since Sept. 1 are up 24 percent from a year earlier, above the 20 percent increase forecast by the government, data show.

“Exports sales were better than expected, and that means tighter supplies before the harvest,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “People are speculating that too much rain may cut planted acreage and take the top end of yields.”

Soybean futures for November delivery rose 1.2 percent to close at $12.4425 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest gain for a most-active contract since May 21.

Flooding and excessive moisture may worsen in some fields west of the Mississippi River in the next four days as showers return to the region, where as much as 12 inches (30.5 centimeters) of rain fell this month, World Weather Inc. in Overland Park, Kansas, said in a report. For the rest of the area, warm, wet weather will aid crops, the forecaster said.

U.S. inventories on June 1 probably were 382 million bushels, the smallest for the date since 1977, according to a Bloomberg News survey. The USDA will release its estimate on June 30.

The agency’s report is “already casting its shadow,” Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report.

Corn futures for December delivery advanced 0.7 percent to $4.4325 a bushel, ending a three-day slump.

Wheat futures for September delivery rose 0.1 percent to $5.8475 a bushel.

--With assistance from Whitney McFerron in London and Phoebe Sedgman in Melbourne.