Soybeans gain on outlook for dry weather

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Associated Press

Posted on August 21, 2013 at 1:01 PM

Updated Thursday, Aug 22 at 12:00 AM

Soybeans are rising to their highest in two months on speculation that dry weather in the Midwest could impact this year's crop.

About one-third of the crop-growing areas in the Midwest could remain "notably dry" for at least the next 10 days, the Commodity Weather Group said in a bulletin on Wednesday. That could threaten the yields of soybean crops.

"It's unusually dry in Nebraska and Iowa, drier than normal," said Sterling Smith, a commodities analyst at Citigroup. "That's allowing the market to build in a little bit of a risk premium."

Soybeans for November delivery rose 13.5 cents, or 1 percent, to $13.04 a bushel. That's the highest price since June 19. Concern about dry weather has pushed soybean prices up 8 percent this month.

In grain trading, wheat and corn also rose.

December wheat rose 3.25 cents, or 0.5 percent, to $6.49. Corn for the same month rose 7.75 cents, or 1.6 percent, to $4.8325.

Metals fell. Copper and silver declined the most.

Copper for September fell 3.2 cents, or 0.9 percent, to $3.31 a pound. Silver for the same month fell 11 cents, or 0.5 percent, to $22.96 an ounce. Gold for December dropped $2.50, or 0.2 percent, to $1,370.10 an ounce.

Platinum for October dropped $6.40, or 0.4 percent, to $1,519.10 an ounce. Palladium fell $2.75, or 0.4 percent, to $746.90 an ounce.

In energy trading, the price of oil slipped $1.26, or 1.2 percent, to $103.85 after the minutes from the Federal Reserve's July meeting suggested that the Federal Reserve appeared to be on track to slow its bond purchases by the end of this year if the economy continues to improve.

Gasoline futures rose 1 cent to $2.94 a barrel. Heating oil was flat at $3.08 per gallon. Natural gas rose 2 cents to $3.46 per 1,000 cubic feet.

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