Following ominously dry weather in two South American countries, prices for soybeans rose for the second straight day in Chicago, Bloomberg reports.
Soybeans for January delivery increased two percent on the Chicago Board of Trade. Just before 11 a.m. in London, the commodity rose three cents to $12.245 a bushel, representing a 0.2 percent increase.
"The global supply of soybeans remains very tight, so any crop problems in Argentina and Brazil would more than likely have a bullish effect on prices," Ker Chung Yang, an analyst at Phillip Futures Pte in Singapore, told Bloomberg.
Hot, dry weather is forecast for the regions of Argentina and Brazil where soybeans grow well. After the U.S., those two nations are the world's largest exporters of the commodity.
In 2005, Argentina endured a drought that damaged 13 percent of its national grain production. Meteorologists taking note of the weather patterns hovering over the two nations fear a reprise could be equally damaging, considering the rainless weather patterns are forecast through the end of November.
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