After an almost four-year low, soybeans continue their two-day gains today to 2 percent. The grain was supported by speculations of dry weather in the U.S. Midwest, as this has the potential to limit yields, reports Reuters. Stress is mitigated by further news that U.S. corn and soybean may receive below-average rainfall within the next ten days which, along with the dry heat, would make pod-setting soybeans difficult.
According to Reuters, although the price is still nearing its off contract lows, Chicago Board Of Trade November soybeans rose 0.3 percent to $10.79-1/4 a bushel, having firmed 1.8 percent on Wednesday.
"The market remains attentive to the weather conditions in order to confirm the currently adequate conditions for soybeans," Paris-based farm adviser Agritel said, according to BusinessWeek. "The models remain rather uncertain, with a possible return of dryness spurring on the prices of the entire soybean complex."
The U.S. Department of Agriculture expects that the domestic output of soybean will reach 3.8 billion bushels in the year that starts Sept. 1, pushing world inventories to record 85.31 million metric tons by the end of the season, according to BusinessWeek.
Some analysts believe that yesterday's oilseed's strength index at 29.3 is a signal that prices may increase, as it is below the 30 level.
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