Soybean futures rose for a second week, as a dry spell is due to follow the heat wave abating in the central US.
(Bloomberg) — Soybean futures rose for a second week, as a dry spell is due to follow the heat wave abating in the central US.
Minimal rainfall is expected in the next seven days in much of the Midwest, according to a government outlook. That poses a risk to crops, which need precipitation after this week’s sweltering weather, CHS Hedging said in a note.
Read more: Corn Harvest Is in Trouble as US Heat Fuels More Damage.
Corn and soybeans are entering the last stretch of the growing season in the US, with the harvest typically kicking off around late September. The annual Pro Farmer Crop tour is due to issue a national production estimate Friday, after surveying fields across the Midwest.
Soybean pod counts in some states on the tour have been high, which is “comforting,” Paris-based adviser Agritel said in a note. “However, we have yet to see these pods fill up to get a true idea of yield potential,” it said.
Read more: Summary of US Pro Farmer Crop Tour After Day Three (Table).
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