Soybeans gained on Friday morning, as expectations that growers in the U.S., the second-biggest shipper in the world, will plant more corn at the expense of the oilseed. Dry weather in Brazil that has harmed crops also pushed the commodity higher, Bloomberg News reports.
Corn seeding may rise 3.1 percent this year to 94.8 million acres while the soybean area may increase 2.3 percent to 76.7 million acres, according to a survey of farmers and industry officials led by Chicago-based Linn Group Inc. The news outlet reports that forecast Somar Meterologia noted that the dry weather in Brazil is still affecting both crops.
U.S. corn "planting will actually be closer to 95 million acres, and that’s going to come at the expense of soybeans," Sudakshina Unnikrishnan, a London-based analyst at Barclays Capital, told Bloomberg. "And we have the South American drought that’s impacting production. With soybeans, the basic upward trend is still in place."
Soybeans for May delivery rose 1.3 percent to $13.6675 a bushel by 10:27 a.m. London time on the Chicago Board of Trade, according to the news outlet.
Reuters reports that soybeans also rebounded from earlier losses in the week due to the rising threat of a drought in Argentina.
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