Soft Commodities Price Watch: Soybeans Extend Gains Ahead of USDA Data

on Sep 6, 2013
Listen Friday, September 6th: The soybean price today headed for a fifth weekly gain in its best run since May on speculation that the U.S. Department of Agriculture (USDA) will cut its production outlook after hot, dry weather damaged crops in the world’s biggest producer of the oilseed.

According to a survey of analysts and traders conducted by Bloomberg, the USDA may reduce its domestic harvest estimate to 3.134 billion bushels from last month’s forecast of 3.255 billion bushels. In addition, rain is expected to remain limited in the U.S.’s main growing regions this week, allowing an expansion in drought conditions.
Soybeans for November delivery on the Chicago Board of Trade (CBOT) today rose 0.4 percent to $13.7225 a bushel and as of 15:00 BST was at $13.6645 a bushel, poised to gain 0.7 percent this week.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Elsewhere on the CBOT, the wheat price for delivery in December today fell 0.2 percent to $6.39 a bushel, down for an eighth day in the worst streak since July 1. As of 15:00 BST, the contract had regained some ground, trading 0.1 percent higher at $6.41 a bushel.
Among other grains, the corn price for December delivery in Chicago advanced 0.22 percent to $4.6200 a bushel after dropping to $4.5700 yesterday, the lowest price since August 15. The corn future is heading for the first weekly loss in the past four.

**Sugar Hits Three-Week High**
Sugar today rose to an almost three–week high in New York on signs of shrinking surpluses and a stronger Brazilian real.
According to Czarnikow Group, sugar production will outstrip demand by two million metric tonnes in the 2013-14 season which starts in October in most countries. The estimate is down by nearly half on the previous forecast of 3.9 million tonnes. Further pushing up the price of the commodity, the Brazilian real gained yesterday for a fourth session to reach its highest level since August 14. Brazil is the world’s largest producer and exporter of sugar and a stronger local currency reduces the incentive for exports priced in dollars.

!m[Sugar at Three-Week High on Shrinking Surpluses](/uploads/story/5330/thumbs/pic1_inline.jpg)
By 15:17 BST, raw sugar for delivery in October on ICE Futures U.S. in New York had risen 1.33 percent to $0.16873 a pound, the highest in more than three weeks. The white sugar price for October delivery on NYSE Liffe in London had gained 1.4 percent to $491.70 a tonne.

In price action for other agricultural commodities so far today, the Arabica coffee price for December delivery is up 0.68 percent to $1.1765 a pound on ICE, while Robusta coffee for delivery in November is 0.5 percent higher at $1,768 a tonne on NYSE Liffe.
The cocoa price for December delivery is down 0.27 percent to $2,560 a tonne in New York and 0.1 percent to £1,703 pounds a tonne in London.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
BRL Soybeans Agriculture Agriculture stocks Commodity Stock Market