(Nasdaq) – U.S. soybean futures gained Monday due partly to a rally in prices for an animal feed ingredient made from the crop. Corn and wheat prices were mixed.
Soybean prices rose to a nearly nine-month high, lifted by a surge in prices for soybean meal, which is derived from the oilseeds and widely fed to chickens and pigs. Prices for the meal rose 4% on Monday amid hopes that reduced soybean production in Argentina this year would trim that country’s meal output and exports, boosting demand for U.S. supplies. Excess rainfall recently has drenched fields in Argentina, likely leading to lower crop production there, resulting in fewer supplies available for processing into meal by soybean crushers.
The dollar is trading at multimonth lows, causing “speculative traders to exit their positions in the currency market and focus on commodities,” Karl Setzer, an analyst with brokerage MaxYield Cooperative in West Bend, Iowa, in an afternoon note to clients. “The question now is if this is just a ‘safe haven’ for investments or if the positions will be held for an extended period of time,” he added.
Soybean futures for delivery in May gained 14 1/2 cents, or 1.4%, to $10.35 1/2 a bushel at the Chicago Board of Trade, the highest closing price since Aug. 10.
Analysts said soybean prices also benefited from midsession fund buying despite improving Argentine weather, which should enable farmers in that country to resume harvest progress after prolonged rain delays.
Corn and wheat prices were mixed, with benevolent U.S. weather weighing on prices for the grains while a falling dollar supported the two markets. Prices for corn were weighed down by clear skies in the U.S. Midwest, which will aid spring planting, while wheat prices were pressured by speculation that participants on an annual crop tour through Kansas this week will forecast above-average crop yields this year.
Declines in the dollar shored up prices for the grains, however.
CBOT May corn was flat. September contracts added 1/2 cent, or 0.1%, to $3.92 1/4 a bushel.
CBOT May wheat dropped 1 cent, or 0.2%, to $4.77 a bushel. September futures added 1/4 cent, or 0.1%, to $4.98 1/2 a bushel.
