July 14 (Bloomberg) -- Soybeans rose for a ninth session in Chicago, the longest streak since August, on speculation hot weather in the U.S. will reduce yields and curb global stockpiles. Rice reached the highest price since Oct. 9, 2008.
Almost a third of soybeans in the U.S. Midwest including Iowa and Illinois, the biggest growing states, may be hurt by unusual heat and dryness over the next 15 days after high winds affected some plants in the states this week, Commodity Weather Group LLC predicted yesterday. The oilseed has gained 7 percent since June 30, the last time prices declined.
“Hot, dry weather is expected to prevail across the Midwest, which could affect crops during the crucial August growing period, lowering yields,” said Justine White, an analyst at VM Group in London.
Soybeans for November delivery climbed 5.25 cents, or 0.4 percent, to $13.85 a bushel by 1:15 p.m. London time on the Chicago Board of Trade. Prices increased 43 percent in the past year, partly on rising demand from China, the biggest importer. The U.S. is the top grower and exporter.
Rice for September delivery added 24 cents, or 1.4 percent, to $16.93 per 100 pounds after touching $17.07. The grain climbed on concern higher guaranteed prices for farmers in Thailand, the top shipper, will boost export costs as import demand strengthens.
Indonesia, the third-largest rice consumer, plans to import for a second year to boost stockpiles 33 percent to 2 million tons, Trade Minister Mari Pangestu said yesterday. Incoming Thai leader Yingluck Shinawatra won a July 3 poll partly on a pledge to raise the guaranteed price for farmers.
The “promise to buy rice at a higher price will likely drive prices higher,” Nirgunan Tiruchelvam, an analyst at Standard Chartered Bank in Singapore, said by phone today. Import demand from Indonesia and threats to production in the U.S. “also add pressure to prices.”
Wheat for September delivery fell 2.75 cents, or 0.4 percent, to $7.1175 a bushel. The grain climbed 12 percent in two sessions before today. Milling wheat for November delivery traded on NYSE Liffe in Paris dropped 1.75 euros, or 0.9 percent, to 199.25 euros ($282) a metric ton.
Corn for December delivery gained 3.25 cents, or 0.5 percent, to $6.83 a bushel in Chicago.
--With assistance from Phoebe Sedgman in Melbourne and Whitney McFerron in Chicago. Editors: John Deane, Sharon Lindores
-0- Jul/14/2011 12:54 GMT
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