Johannesburg - South African soybean futures rose to the highest level in almost 10 months, following prices of the oilseed in the US that surged due to hot, dry weather in the Midwest.
Soybeans for delivery in December, the most active contract, climbed 2.4 percent to 5,655 rand ($553) a metric ton by the midday close on the South African Futures Exchange.
That’s the biggest increase for a most traded contract since October 29, according to data compiled by Bloomberg.
US prices for the oilseed surged the most since March 2011 after the Professional Farmers of America said output may be 3.16 billion bushels because of planting delays and cool, dry weather that has stunted growth.
The estimate is smaller than the US Department of Agriculture’s prediction for 3.26 billion bushels
“The soybean market is the most critical at the moment as prices have gone up due to dry weather,” in the US, Andrew Fletcher, an independent trader in Kroonstad in the Free State province, said by phone today.
“Conditions look dry and hot for most of the week.”
White corn for delivery in December, the most active contract, gained 1.7 percent to 2,387 rand a metric ton, while the yellow variety for delivery in the same period, rose 1.6 percent to 2,239 rand a ton. - Bloomberg News