The most severe drought in more than 50 years in the Midwest of the U.S. helped push soybeans to a record high, according to Bloomberg.
Crops compromised by the drought threaten to slash global supplies of soybeans, which already is suffering from parched weather last season in South America. Midwest rain during the past seven days has not rejuvenated crops as the grain pushed north of $17 per bushel, and one analyst forecast additional increases.
"We would expect at some point to see soybeans trade at $20 a bushel," analyst Chris Gadd with the Macquarie Group Ltd. in London told the news source. "The devastation seen in South America earlier this year left soybeans very tightly supplied prior to the issues in the U.S. this summer."
At 8:23 a.m. on Tuesday, soybean futures advanced 1.77 percent, a 0.255 lift to $17.09 per bushel.
Reuters reports soybeans have climbed in value for three consecutive trade sessions while corn futures pushed to their highest price since August 10, propelled higher by expectations of poor yields.
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