July 14 (Bloomberg) -- Soybeans rose, extending the longest rally since August, on speculation that unusually hot weather during the next month will curb crop yields in the U.S., the world’s biggest grower and exporter.
Temperatures will be as much as 12 degrees Fahrenheit above normal for five days starting July 16 in the Midwest, the main growing region, before cooler weather and rain return, the National Weather Service said. July may rank as the sixth warmest since 1960, T-Storm Weather LLC said in a report. Soybean prices are up 7 percent this month.
“The markets are focused on the heat next week,” Jim Riley, a broker for the Linn Group, said by telephone from Chicago. “There’s some reluctance to add to long positions after the recent rally and the potential for the forecasts to change.”
Soybean futures for November delivery rose 4.25 cents, or 0.3 percent, to settle at $13.84 a bushel at 1:15 p.m. on the Chicago Board of Trade, the ninth straight gain and the longest rally since August. Earlier, the oilseed reached $13.895, the highest since June 10. The commodity has gained 44 percent in the past year.
Prices also rose on increased demand for U.S. supplies for delivery after the harvest this year, Riley said.
U.S. exporters sold 651,904 metric tons in the week ended July 7 for delivery after Aug. 31, five times higher than a week earlier, the U.S. Department of Agriculture reported.
“Export demand improved last week,” Riley said. “We may see a pause after the recent rally.”
China’s imports may rise to as much as 56.6 million tons in the marketing year beginning Oct. 1 from 51.6 million tons a year earlier, Zhang Jinjun, a vice-general manager of oilseed at COFCO Ltd., said at a conference in Xi’an today.
Soybeans are the second-largest U.S. crop, after corn, valued at $38.9 billion in 2010, government figures show.
--With assistance from William Bi in Beijing. Editors: Steve Stroth, Daniel Enoch
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