Soft Commodities Price Watch: Soybeans Rally on Dry U.S. Weather

on Sep 3, 2013
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iNVEZZ.com Tuesday, September 3rd: U.S. grain futures traded higher today, with soybean prices soaring over three percent as updated weather forecasting models pointed to warm and dry weather across major soy-growing states in the US Midwest during the next three to five days, fuelling concerns over potential crop damage.

The soybean price for delivery in November on the Chicago Board of Trade (CBOT) today rose as much as 3.8 percent to $14.085 a bushel, the biggest gain since August 26, and was at $14.037 as of 14:52 BST. The contract gained 13 percent last month, the most since July 2012, on concern that crops delayed by wet weather earlier this year will be damaged by dryness or an early frost.

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Elsewhere on the CBOT, the corn price delivery in December advanced as much as 1.5 percent to $4.8925 a bushel, and stood at $4.8675 a bushel as of 14:55 BST. As of the same time, the wheat price for December delivery was 0.88 percent higher at $6.5975 a bushel. Milling wheat for November delivery on NYSE Liffe in Paris advanced 0.9 percent to 191.75 a metric tonne.

**Signs of Import Demand Boost Sugar**
The sugar price today rose for the first time in five days in New York amid signs of improving demand. The International Sugar Organisation said last week that sugar production will exceed demand by 4.5 million tonnes in the 2013-14 season that starts in October, down from a surplus of 10 million in the preceding season. In addition, according to Swiss Sugar Brokers, Brazilian raw sugar for loading this month was at a premium of 0.05 cent to 0.1 cent to the October futures in New York last week, compared to 0.05 cent as of August 1. About 700,000 metric tonnes of sugar have been sold in the past three weeks with

Chinese and Middle East refiners buying, the company said.
Raw sugar for delivery in October on ICE Futures U.S traded 0.98 percent higher at $0.1645 as of 15:08 BST. White sugar for the same month of delivery advanced 0.2 percent to $478.50 a tonne on NYSE Liffe in London.
Among other soft commodities, the cocoa price for delivery in December on ICE rose as much as 0.6 percent to $2,450 a tonne and was $2,439 as of 15:11 BST. The contract gained 0.6 percent to £1,629 a tonne in London, marking the first gain in four days.

Arabica coffee for delivery in December also traded higher, jumping 1.68 percent to $1.1825 a pound by 15:13 BST. The Robusta coffee price for November delivery advanced 0.6 percent to $1,769 a tonne in London.
!m[Sugar Advances on Signs of Improved Demand ](/uploads/story/5267/thumbs/pic1_inline.jpg)
**Rubber Extends Rally to Three-Month High**
Rubber price today extended gains for a second day, reaching the highest level in more than three months, as a depreciating yen increased the appeal of contracts denominated in the Japanese currency.
The rubber price for delivery in February on the Tokyo Commodity Exchange (TOCOM) advanced as much as 2.9 percent to 286.7 yen a kilogramme ($2,878 a metric tonne), the highest for a most-active contract since May 23, and traded at 282.76 yen at 15:18 BST. The rally pared losses to 6.2 percent this year.

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