Soybeans, Corn May Rise as Hot, Dry Weather Threatens U.S. Crop

By Jeff Wilson

July 14 (Bloomberg) -- Soybeans may rise to a record and corn may gain on speculation a shift to hot, dry weather will reduce yields after record Midwest rains last month stunted root development, leaving U.S. crops vulnerable to heat stress.

Twenty-seven of 35 traders, advisers and grain merchants surveyed on July 11 from Beijing to Chicago expected soybeans to rise, and 17 of 32 said to buy corn.

Soybeans fell 2.1 percent to $15.96 a bushel last week in Chicago after reaching an all-time high of $16.3675 on July 3. Corn tumbled 8.7 percent to $7.0925 a bushel, the biggest weekly drop since March. The price rose to a record $7.9925 on June 27.

Most respondents surveyed last week were surprised by the decline in soybeans and corn. Since 2004, the surveys have been right 60 percent of the time on corn and 63 percent on soybeans.

Weekly results: Bullish on corn: 17 Bullish on soybeans: 27 Bearish on corn: 15 Bearish on soybeans: 8

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net.