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Montevideo, November 25th 2020 - 02:38 UTC

 

 

US soybeans futures hit a four year high on dry conditions in key South American crop areas

Saturday, November 21st 2020 - 08:49 UTC
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While some rain has reached Brazilian and Argentine grain belts, more moisture is needed to complete soybean and corn planting and boost crop development. While some rain has reached Brazilian and Argentine grain belts, more moisture is needed to complete soybean and corn planting and boost crop development.

U.S. soybean futures rose for a sixth consecutive session on Friday and hit a four-year high on dry conditions in key South American crop areas and concerns about dwindling U.S. supplies. Corn also gained on strong exports and worries about South American dryness, while wheat ended mixed.

All three markets finished below their session highs as end-of-week profit-taking clipped gains. Still, corn and soybeans posted solid weekly gains for a third straight week on worries that demand must slow further to ration tightening supplies.

“There is a scarcity concern in the market this year,” said Rabobank commodity analyst Michael Magdovitz. “We're getting into the period when there is a higher moisture requirement for the Brazilian crop and when there is not so much U.S. crop left to be sold.”

While some rain has reached Brazilian and Argentine grain belts, more moisture was seen as needed to complete soybean and corn planting and boost crop development.

Argentine soy planting advanced sharply over the past week after rains in key drought-hit areas, the Buenos Aires Grains Exchange said on Thursday, though much of the country remained dry.

“The South American forecast still looks dry for most of Argentina, and warmer than expected. It's a very concerning weather forecast,” said Brian Hoops, president of U.S. broker Midwest Market Solutions.

Tags: drought, rain, Soybeans.

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