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Soybean Futures Close Higher as Adverse Weather Curbs Prospects

Wet Weather in U.S., Dryness in Brazil Negative for Soybeans

Soybean futures closed higher as investors seeking a bargain snapped up contracts amid overly wet fields in the U.S. and dry weather in Brazil. 

As much as six times the normal amount of rain has fallen in much of the Midwest in the past 90 days, according to the National Weather Service. Flooding has become common in weather reports as strong thunderstorms have caused rivers and tributaries to overflow their banks. A strong storm in parts of northern Kansas and Missouri this week has caused several waterways to flood fields and roads. 

Meanwhile in Brazil, the weather has reportedly turned dry since the latter part of August, which could impact the crop soon to be planted. Still, rain is expected in late September, which could help improve soil moisture in the country.

Upside is limited, however, after the U.S. Department of Agriculture said on Monday that corn yields would total 174.4 bushels an acre, missing expectations for a bigger drop, and soybean yield would come in at 50.6 bushels an acre, well above the prior month’s projection and forecasts by analysts. In a mostly neutral report today, exporters said corn sales of 703,500 metric tons and soybeans at 1.02 million tons, though last week was shortened by the Labor Day holiday. 

Soybeans for November delivery gained 7¼¢ to $9.50 a bushel on the Chicago Board of Trade. Soy meal futures for December delivery gained 50¢ to $306.20 a short ton, and soy oil rose 0.47¢ to 32.33¢ a pound.

Corn futures for December delivery fell 2½¢ to $3.29¼ a bushel.

Wheat futures for December delivery lost 4¼¢ to $3.98¾ a bushel in Chicago, while Kansas City futures lost 3¢ to $4.15¼ a bushel.

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