Soybeans Rise in Overnight Trading as Buyers Return; Argentina Still Dry in Major Growing Area

(Agriculture.com) – SOYBEANS JUMP OVERNIGHT AS BULLS SEEK TO RETAKE SOYBEAN, CORN MARKETS

Soybeans jumped in overnight trading Tuesday as buyers returned after last week’s losses.

The price last week dropped about 4%, closing below $10 a bushel on Friday. That brought in buyers who likely believe prices will rise along with global demand for the oilseeds.

Overseas importers have been snapping up U.S. supplies since the start of the marketing year on September 1 amid low prices. That’s keep the market underpinned, though sufficient global output and favorable weather in South America continue to weigh.

Soybean futures for March delivery rose 10¢ to $10.07½ a bushel overnight on the Chicago Board of Trade. Soy meal futures added $22.80 to $314.40 a short ton, and soy oil gained 0.45¢ to 35.33¢ a pound.

Corn futures rose 2½¢ to $3.48¼ a bushel in Chicago.

Wheat futures for March delivery added 5½¢ to $3.99 a bushel on the CBOT, and Kansas City futures gained 5¼¢ to $4.11½ a bushel.

DRY WEATHER STILL PRESENT IN PARTS OF ARGENTINA, FORECASTER SAYS

While recent wet weather has been a drag on soybean and corn prices lately, it’s not all good news for growers in South America.

Heavy rains in central areas of Argentina have definitely helped crops in the region, and precipitation in northern areas has improved prospects for beans, but some dryness remains in key growing areas, according to MDA Information Services Senior Ag Meteorologist Donald Keeney.

“Notable dryness will continue in La Pampa and southern Buenos Aires,” he said in a note to clients on Tuesday morning.

Buenos Aires is the second-largest state by soybean output in the country. Combined, the two compose about 30% of Argentina’s production, according to the U.S. Department of Agriculture.

Growers in Argentina are expected to produce 57 million metric tons of beans in the 2016-2017 marketing year, little changed from last year. Still, that is about 17% of the world’s output, making it a major player in global markets.

SOUTHERN PLAINS WEATHER TO REMAIN DRY IN WESTERN AREAS

Dry weather is expected to continue in much of the Southern Plains, at least for the next several days, according to forecasters.

“Showers have improved moisture in eastern areas, but dryness continues in western areas,” MDA Information Service said in a report on Tuesday. “Snow cover remains limited, but winterkill threats will remain low this week.”

The six- to 10-day outlook is wetter in southeastern parts of the region, but the 11- to 15-day forecast is calling for dry weather. Western areas likely will remain dry.

As little as 10% of normal amounts of rain have fallen in much of southwestern Kansas and the Oklahoma and Texas panhandles in the past month, according to the National Weather Service.