Soybeans are rising to their highest in two months on speculation that dry weather in the Midwest could impact this year’s crop.
About one-third of the crop-growing areas in the Midwest could remain “notably dry” for at least the next 10 days, the Commodity Weather Group said in a bulletin on Wednesday. That could threaten the yields of soybean crops.
“It’s unusually dry in Nebraska and Iowa, drier than normal,” said Sterling Smith, a commodities analyst at Citigroup. “That’s allowing the market to build in a little bit of a risk premium.”
Soybeans for November delivery rose 13.5 cents, or 1 percent, to $13.04 a bushel. That’s the highest price since June 19. Concern about dry weather has pushed soybean prices up 8 percent this month.
In grain trading, wheat and corn also rose.
December wheat rose 3.25 cents, or 0.5 percent, to $6.49. Corn for the same month rose 7.75 cents, or 1.6 percent, to $4.8325.
Metals fell. Copper and silver declined the most.
Copper for September fell 3.2 cents, or 0.9 percent, to $3.31 a pound. Silver for the same month fell 11 cents, or 0.5 percent, to $22.96 an ounce. Gold for December dropped $2.50, or 0.2 percent, to $1,370.10 an ounce.
Platinum for October dropped $6.40, or 0.4 percent, to $1,519.10 an ounce. Palladium fell $2.75, or 0.4 percent, to $746.90 an ounce.