Soybeans, Corn Climb as Dry Spell Hurts South American Crops

By Sungwoo Park

Jan. 12 (Bloomberg) -- Soybeans advanced to the highest in more than three months on speculation that hot, dry weather in Argentina and Brazil will damage crops and boost demand for U.S. exports. Corn and wheat also gained.

High temperatures and lack of rain in Argentina have hurt corn crops and delayed farmers' plans to sow soybeans, lowering potential yields, a government weather forecaster said Jan. 9. Argentina is the second-largest exporter of corn after the U.S.

``Grains are rising this morning,'' said Chris Yoo, a manager at the global commodities with Samsung Futures Inc. in Seoul. ``The dry weather news is boosting grains, coupled with speculation that yields will be lower than previous years.''

Soybeans for March delivery climbed as much as 1 percent to $10.4675 a bushel, the highest price since Oct. 2, on the Chicago Board of Trade. Futures traded at $10.4550 a bushel at 11:59 a.m. Seoul time. Last week, soybeans gained 6 percent, the fifth straight weekly advance.

Rainfall in Argentina over the next five days will be lighter than forecast with much of the country failing to get enough moisture to counter above-normal temperatures, Drew Lerner, the president of World Weather Inc. in Overland Park, Kansas, said Jan. 9.

Corn for March delivery advanced as much as 1 percent to $4.15 a bushel and traded at $4.1250 a bushel at 12 p.m. Seoul time. The price dropped 0.4 percent last week.

Wheat for March delivery advanced 0.8 percent to $6.3450 a bushel. The contract gained 3 percent last week, extending a rally for the fifth straight week.

To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net.