Soybeans climbed before a government report that may show fourth-quarter stockpiles in the U.S., the biggest grower and exporter last year, fell to the lowest level in nine years.
The contract for March delivery gained as much as 0.4 percent to $13.92 a bushel on the Chicago Board of Trade and was at $13.9025 at 11:28 a.m. Singapore time. Futures reached a record $17.89 on Sept. 4 as output dropped amid the most-severe Midwest drought since the 1930s.
Inventories probably fell to 1.98 billion bushels as of Dec. 1, the lowest for the fourth quarter since 2003, according to the average estimate of 26 analysts surveyed by Bloomberg. The U.S. Department of Agriculture will release the quarterly stockpiles report on Jan. 11 in Washington.
“The market is speculating that the U.S. figures will be adjusted downwards,” Joyce Liu, an analyst at Phillip Futures Pte., said by phone from Singapore today.
Corn for March delivery rose for a third straight day, adding 0.2 percent to $6.8975 a bushel, while wheat for delivery in the same month was little changed at $7.515 a bushel.
The corn harvest in the U.S., the biggest grower and exporter, probably fell to 10.65 billion bushels, from 12.358 billion bushels a year earlier, and a USDA estimate of 10.725 billion in December, according to a separate Bloomberg survey of 31 analysts. The USDA will update its forecast on Jan. 11.
The drought that cut U.S. harvests last year will probably persist through the next planting season, threatening a recovery in production, Bryce Anderson, an agricultural meteorologist at DTN, said in an interview yesterday.
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