July 28 (Bloomberg) -- Soybean futures rose the most in nine weeks on concern that dry weather forecast into August will curtail yields in the U.S., the world’s biggest grower. Corn rose, while wheat fell.
Weekend rain was less than expected across parts of the Midwest, and drier weather in the next 10 days will expand crop stress to about 25 percent of the region, Commodity Weather Group LLC in Bethesda, Maryland, said in a report. Cool temperatures will help avert serious damage if precipitation expected late next week arrives, the company said.
“People want to see a widespread Midwest rain before pressing the soybean market” after this year’s price slump, Dan Cekander, the director of grain-market analysis at Newedge USA LLC in Chicago, said in a telephone interview. “Soybean yields are determined by August rain.”
Soybean futures for November delivery rose 2.2 percent to close at $11.0775 a bushel at 1:15 p.m. on the Chicago Board of trade, the biggest gain for a most-active contract since May 21. The oilseed has climbed 5 percent from a 45-month low of $10.55 on July 23.
China bought 486,000 metric tons of U.S. soybeans for delivery after Sept. 1, the Department of Agriculture said today in a report. In the week ended July 17, U.S. exports more than tripled to 2.68 million tons from a year earlier, agency data show.
In the two weeks ended July 22, hedge funds and other large speculators bet on a price decline for the first time since December 2011, Commodity Futures Trading Commission data showed on July 25. The net-short position of 18,543 contracts was the biggest since October 2006.
Corn futures for December delivery rose 1.3 percent to $3.7675 a bushel, the biggest gain since June 19. On July 24, the price touched a four-year low of $3.6425.
Wheat futures for September delivery fell 0.6 percent to $5.3475 a bushel.
This year, wheat has dropped 12 percent, and corn has declined 11 percent.