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Soybean prices rise despite bumper-crop news |
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August 13, 2000
CHICAGO (AP) - Soybean prices leaped higher Friday on the Chicago Board of Trade despite government confirmation that the current crop is on a record pace as harvest time draws near. Corn prices, however, declined despite similar crop news. In other commodities markets, gold and sugar rose. Soybean investors shrugged off news of a slightly larger-than-expected crop estimate and went on a buying spree. Much of the oomph in the rally came from data that showed strong demand for soybeans. Projected ending stocks were estimated at 465 million bushels, down by 15 million bushels. And U.S. exports were pegged 40 million bushels higher at 1.01 billion bushels, which would be the first time they topped the billion mark. Support also came from hot-weather forecasts for the Midwest next week. That resulted in the unexpected combination of bigger crops and higher prices. "These are massive crops," said grains analyst Bill Biedermann of Allendale Inc. Thanks to the bumper crops and hefty government subsidies, "there are going to be a lot of happy farmers" despite relatively low market prices, he said. Soybeans for November delivery rose 5 1/4 cents for the day to dlrs 4.62 a bushel. Corn prices declined after the U.S. Department of Agriculture report estimated the crop at a whopping 10.4 billion bushels. The fall was limited by prospects for a Midwestern heat wave next week. December corn fell 2 1/4 cents to dlrs 1.87 1/4 a bushel. Gold jumped higher on the Comex division of the New York Mercantile Exchange after a large trading house moved in late in the session to cover its shorts, which means buying contracts to balance previous sales. The metal had edged higher earlier on the U.S. dollar's slip against the euro and the rand. But the dollar regained strength, sending gold lower again before the unexpected late surge. December gold rose dlrs 2.70 to dlrs 280.30 an ounce. Sugar prices have been bouncing back from a lengthy slide on bullish weather and disease-damaged crops in Brazil, Australia and Thailand. On Friday, confirmation of of smaller crops in Brazil and Australia and strong demand lent support to the market. Bargain-hunting by trade houses helped fuel the rally. October sugar rose .24 cent to 10.65 cents a pound on the New York Coffee, Sugar and Cocoa Exchange. |