Soybeans Resume Rally as New Wave of Heat Expected
Soybeans advanced today on forecast that drought would continue to affect the main growing region of the United States. Yesterday, the grain retreated on speculations that rains would alleviate the heat and lack of moisture, but now a new wave of heat is expected next week. The US Department of Agriculture predicted that US soybean output may reach the lowest level in four years.
Gregg Hunt, a market analyst at Archer Financial Services Inc., said:
There is no relief in sight, and most crops are running out of soil moisture to stay alive,” said in a telephone interview. “This is setting up to be an international disaster.
Soybeans rose from $16.3000 to close at $16.4200 per pound today on CBoT.
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