Conjecture about inclement weather in South America during the next 14 days drew down soybean futures on Thursday, marking the legume’s second consecutive trading session of losses, according to Bloomberg.
Parts of Brazil and Argentina will see rainfall amounting to as much as two inches during the next 48 hours, according to Chicago-based QT Weather, which also noted that Brazil will stay wet. The U.S. Department of Agriculture said earlier this month that those two countries will see increases of soybean production of a combined amount of 28 percent.
“Million-dollar rains for recent dry areas of Argentina are very bearish for beans,” states an email penned by executive vice president Roy Huckabay with the Linn Group in Chicago. “Argentina soybeans can still yield 5 percent over normal with this type of early February rain.”
At 2:37 p.m. on Thursday, soybean futures fell 0.8 percent, a 0.115-cent slip to $14.255 per bushel.
Agriculture.com reports slippage to the legume on Thursday also pulled down the value of other commodities, such as wheat, soy oil and soy meal.
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