(Bloomberg) – Soybeans extended the biggest gain in three weeks on concern that crops in the U.S., the world’s largest grower, may be susceptible to frost and amid sustained export sales. Corn fell.
Much of the U.S. soybean crop was planted late because of wet weather in May, and development slowed as temperatures in July were below average. Late-developing soybeans will be at risk of early frost, Michael Cordonnier at crop analyst Corn & Soybean Advisor Inc., wrote on Aug. 7.
Soybeans for November delivery climbed 0.7 percent to $11.9225 a bushel on the Chicago Board of Trade by 5:25 a.m. Prices gained 1.6 percent yesterday, the most since July 16, and are set to advance 0.9 percent this week.
“There are some concerns about soybeans having some frost issues going forward,” said Graydon Chong, a grains and oilseed analyst at Rabobank International in Sydney. “The market is squeezed a little bit higher as a result of the short-term production concerns and strong demand.”
U.S. export sales of soybeans were 1.1 million tons in the week ended Aug. 1, exceeding 1 million tons for a second week, government data show.
Corn for December delivery slipped 0.2 percent to $4.5875 a bushel, on track for a fourth weekly loss. Wheat for delivery in December advanced 0.4 percent to $6.565 a bushel in Chicago, while milling wheat for November delivery gained 0.4 percent to 183.75 euros ($245.86) a ton in Paris.
