Weather concerns is South America push up soybean prices

Soybean futures grew in Chicago yesterday, Jan. 4, on the forecast of dry weather in South America, Reuters reports.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.9% at $13.67-3/4 a bushel, as of 0252 GMT. Corn rose 0.8% to $5.94 a bushel and wheat gained 0.4% to $7.61 a bushel.

Reportedly, South American weather forecasts returned to dry and hot after beneficial rains last week in Brazil and Argentina. In Argentina, moisture deficits could expand to affect more than half of corn and soybean crops by next week, as per the data of the Commodity Weather Group.

Gains in soybean futures were capped by the disappointing U.S. weekly export inspections, with 1.19 mln t of the oilseed exported in the week ended Dec. 30, down 32% from the previous four-week average and below analysts' estimates.

U.S exporters shipped 596,092 t of corn last week, down 45% from the prior four-week average and at the low end of analysts' expectations, while 141,816 t of wheat was inspected for export, below expectations and 70% below the previous four-week average.

Learn more: TOP 14 Wheat Exporters From Ukraine in 10M 2021

The wheat market was supported by tightening world supplies. Condition ratings for winter wheat fell sharply during December in Kansas and Oklahoma, the top two U.S. winter wheat producers, the U.S. Department of Agriculture (USDA) said on Monday.

Large speculators raised their net long position in CBOT corn futures in the week ended Dec. 28, regulatory data showed.

As of Dec. 24, staple grains export from Ukraine totalled over 30.7 mln t, 22.6% up YoY.