Soybean futures in the United States rose slightly overnight, driven by delayed planting in Brazil, the world's largest exporter of the oilseed, and by increasing drought in the United States. According to consulting firm AgRural, Brazilian producers have completed only 8.2% of planting as of this week, less than half of the 17% achieved in the same period last year.

The extremely dry weather has affected producing regions, but the forecast of widespread rains for next week improves the outlook for farmers. The National Supply Company (CONAB) projects a harvest of 166 million tons for Brazil, while the USDA estimates a production of 169 million tons, which would be a record if realized, surpassing the 153 million tons of 2023.

In the United States, drought intensifies in the Midwest, with 53% of an area of ​​nine states, including Iowa and Illinois, facing these conditions on Tuesday, according to the US Drought Monitor. That’s up from 42 percent a week ago and 3.7 percent three months ago. In Kansas, where hard red winter wheat is grown, 64 percent of the state is in drought, up from 57 percent a week ago and 18 percent three months ago.

Overnight, November soybean futures rose 3¢ to $10.01 a bushel on the Chicago Board of Trade. Soybean meal rose $3.70 to $321.80 a short ton, while soybean oil fell 0.12¢ to 42.47¢ a pound. Corn futures rose 1¾¢ to $4.09½ a bushel. In the wheat market, December futures fell 1¼¢ to $5.88¼ a bushel, while Kansas City futures rose ½¢ to $5.96½ a bushel.

Source: Agrolink