Soft Commodities Price Watch: Soybeans Surge the Most Since 2011

on Aug 26, 2013
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iNVEZZ.com Monday, August 26th: Grain futures traded higher today, with soybeans surging the most since March 2011 as hot, dry weather in the U.S. Midwest growing region threatened to curb crop prospects in the world’s largest producer of the oilseed.

The soybean price for November delivery on the Chicago Board of Trade (CBOT) gained as much as 4.6 percent to $13.8925 a bushel, the most since March 2011, and traded at $13.3807 by 15:10 BST. The contract rose 5.5 percent last week, the third straight increase.
Elsewhere on the CBOT, corn for delivery in December jumped as much as 4.7 percent to $4.9200 a bushel, the highest since July 23, and was at $4.8925 as of 15:13 BST. The corn harvest will be 13.46 billion bushels, less than the 13.76 billion estimated this month by the USDA, Pro Farmer said on Friday.

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The group made its projections after a four-day tour of 2,600 fields in seven Midwest states last week.
The wheat price also rallied today. The CBOT contract for delivery in December rose as much as 2.2 percent to $6.60 a bushel, the most since July 9, and traded at $6.5575 a bushel as of 15:14 BST.
**Sugar, Coffee Higher as Traders Monitor Currency Movements**

Sugar and coffee futures were higher today as traders continued to monitor movements in the Brazilian real. Brazil is the world’s largest producer and exporter of sugar and Arabica coffee beans and the fluctuations in the exchange rate for its currency impact the prices of the two soft commodities.
The sugar price for October delivery on the ICE Futures U.S. Exchange rose as much as 0.75 percent today, touching $0.1656 a pound, after gaining 1.2 percent on Friday. The Arabica coffee price rose as much as 1.15 percent in today’s ICE session to hit a daily high of $1.1840 a pound.

Among other soft commodities, the cocoa price for December delivery on ICE increased by 0.81 percent, standing at $2,485 a tonne as of 15:40 BST.
**Rubber Entering Bull Market**
!m[Rubber Entering Bull Market on Signs of Accelerating Chinese Growth ](/uploads/story/5092/thumbs/pic1_inline.jpg)
Rubber is entering a bull market as a weaker Japanese yen and signs that China’s economy is regaining strength boosted demand for the commodity used in tires.

“Rubber resumed a rally as optimism grew that Europe’s economy may solidify its recovery and the Chinese growth may be accelerating, leading to an expansion in demand,” said Kazuhiko Saito, chief analyst at broker Fujitomi Co. in Tokyo, as quoted by Bloomberg.
Rubber for delivery in January advanced 2.8 percent to 277 yen a kilogramme ($2,812 a metric tonne) on the Tokyo Commodity Exchange (TOCOM), a 22 percent gain from this year’s lowest close for a most-active contract of 227.2 yen reached June 26. Futures fell into a bear market on April 1.

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Soybeans Agriculture Agriculture stocks Commodity Stock Market