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Soybeans advance on fears about dry weather

Soybeans reached a three-week high in Chicago and corn extended a rebound from a 35-month low on concern dry weather and frost may hurt plants in the US, the world’s biggest grower of both crops.

Soybeans for delivery in November gained 0.5 percent to $12.4575 a bushel at 6:52 a.m. on the Chicago Board of Trade, poised to rise for a fourth session. The oilseed touched $12.535, the highest since July 25.

Soybeans in northern Illinois on a low-humidity day yesterday afternoon were showing stress, while corn “looks great,” Georgy said. Grains were supported by buying to close out bets on lower prices, fueled by concern about reduced yields, he said.

More than a third of Midwest corn and soybeans remains “notably dry,” Commodity Weather Group wrote in a report on Thursday. Dryness will keep lowering yield potential for corn and particularly soybeans in affected areas, the forecaster said. Corn for delivery in December rose 0.3 percent to $4.5675 a bushel. The grain advanced 1.8 percent yesterday after tumbling on August 13 to $4.4575, the lowest since September 2010.

The US corn harvest will be a record 13.763 billion bushels, 28 percent more than in 2012, the Department of Agriculture said August 12.

Farmers will gather 3.26 billion bushels of soybeans this year, compared with the 3.42 billion bushels forecast in July, following excess rain in May and June that hurt yields, it said.

Wheat for delivery in December added 0.3 percent to $6.4475 a bushel. Milling wheat for delivery in November traded on NYSE Liffe in Paris rose 0.8 percent to 183.50 euros ($243.94) a metric ton.