Soybean prices could jump 4.7% to US$14.50/bushel in 'coming weeks' as dry weather in South America may continue to crimp yields, Oil World says
March 27, 2012
– Prices of July soybeans could jump 4.7% if South American production is further crimped by dry weather, Oil World said, Bloomberg reported March 27.
July contracts could reach US$14.50 a bushel in the “coming weeks” as output in South America falls, the researcher said. Soybean crops in Brazil and Argentina are set to decline, Oil World said. China is continuing to buy soybeans to boost inventories, the report said.
Global oilseed output will drop 8.5% to 242.9 million tonnes in the 2011-2012 season, according to Oil World.
Production in the Southern Hemisphere will fall 12% to 121.5 million tonnes, while output in the Northern Hemisphere will drop 5.1%, Oil World Said.
Soybeans for July delivery increased 0.9% to US$13.8425 a bushel in Chicago trading March 26, the highest level since September. The contract has increased 13% in 2012 as South American production is cut by dry weather.
The primary source of this article is Bloomberg, New York, New York, on March 27, 2012.