Soybeans at Record, Trade Above $17
Soybeans jumped to a record today, rising above the $17 level for the first time. US Midwest received rains recently, but they failed to ease drought to any noticeable degree. The conditions for crops remain worst since 1988. Some market analysts believe that prices may rise as high as $20 per bushel.
The Standard & Poor’s GSCI Index of raw materials was rallying, driven mostly by agricultural commodities as adverse weather in the United States, as well as in some other parts of the world, has driven grain prices to the upside. There are worries that the high prices would damp demand for grains, but for now consumption remains stable. The US Department of Agriculture reported that global soybean inventories has slumped 26 percent to 51.9 million metric tons at the end of the 2011–12 season from a year ago.
November futures for delivery of soybeans gained as much as 1.7 percent to $17.1175 per bushel as of 13:09 on CBoT, following the rally to $17.1275 — the highest price for a most actively traded contract ever.
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