The belief that dry weather in Argentina will decrease the harvest of soybeans pushed the commodity's price to its highest level in the past month, Bloomberg reports.
The South American nation's region that produces soybeans in bulk is not part of the area that will be rained on this weekend, according to meteorologists in Chicago. Rather, hot and dry weather will resume and it also will afflict areas that did not receive enough rainfall.
"Uncertainty about production prospects in Argentina is boosting soybeans," Jim Gerlach, president of A/C Trading Inc. in Fowler, Indiana, told Bloomberg. "Growing areas have been too dry recently, and the below-normal rainfall pattern is likely to continue."
March-delivery soybeans increased 1.75 cents shortly after 1 p.m. on the Chicago Board of Trade. That 0.1 percent increase boosted the commodity's price to $13.0775 per bushel. March-delivery corn slipped three cents to $5.8425 per bushel on the Chicago Board of Trade.
Corn was "challenged by outside markets that are very much commodity negative, with the dollar sharply higher," Don Roose, president of U.S. Commodities Inc. in West Des Moines, Iowa, told Bloomberg.
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