U.S. soybean prices climbed to new highs Thursday on a wave of buying by investment funds betting on lower world crop production and higher U.S. export demand.
The latest rise builds on gains this week as soybean prices reached their highest level in more than eight months. Worries lingered thatexcessive rains in Argentina had damaged that country’s crop, helping to fuel buying by fund managers and others.
Optimism over demand for U.S. soybean exports also supported prices, with some traders betting that delayed Argentine shipments will encourage international buyers to seek supplies from the U.S. instead.
“Argentina is a significant factor,” said Arlan Suderman, chief commodities economist for brokerage INTL FCStone, noting that some market watchers believe wet weather may have cut that country’s soybean crop by as much as 10 million metric tons.
While skeptical of the estimated drop, Mr. Suderman said “That’s the kind of rhetoric that makes the funds want to own soybeans because the margin of error has gotten much smaller for the U.S. growing season.”
(Source – http://www.wsj.com/articles/soybean-prices-hit-eight-month-high-1461261262)