Soybeans, Corn Rise as Drought Slashes Grain Output in Russia

Soybean and corn prices jumped to the highest level since January as drought slashed grain production in Russia and parts of Europe, boosting demand for supplies from the U.S., the world’s biggest producer and exporter, reported “Kazakh-Zerno” IA with reference to the “Businessweek“.

Russia declared emergencies in 27 crop-producing regions as drought harmed crops across at least 10.3 million hectares (25.5 million acres). Global equity markets rose following better- than-forecast earnings reports, and raw materials climbed, led by wheat and energy.

“Corn and soybeans are rising on Russian crop concerns,” said Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago. “The rally in crude oil and stocks and the dollar’s decline caused a rush of new investment money to flow into the grain markets.”

Soybean futures for November delivery rose 12.25 cents, or 1.2 percent, to $10.1725 a bushel at 10:20 a.m. on the Chicago Board of Trade. Earlier, the price reached $10.295, the highest level for a most-active contract since Jan. 11. In July, the oilseed jumped 11 percent, the most since May 2009.

Corn futures for December delivery gained 6 cents, or 1.5 percent, to $4.1275 a bushel. Earlier, the price reached $4.18, the highest level since Jan. 12. In July, the price advanced 8.9 percent, the most since February.

Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government figures show.

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