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.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.