Soybean futures again surged in overnight trading as adverse growing weather in parts of South America persists.
Dry weather is expected in the short term in the main growing areas of Argentina and across southern Brazil, Weathertrends360 said in a report.
Some recovery is expected in parts of Brazil later this month into February, but that’s when harvest activities start and the safrinha, or second crop, planting begins, the forecaster said.
Rain will continue to run at a deficit this week in much of Argentina and southern Brazil.
Weathertrends360 said this week will mark the third driest in 30 years in Santa Fe, Argentina, and the fourth driest in the past three decades in Rio Grande do Sul, Brazil.
The dry weather in South America has given prices a boost in recent weeks.
Brazil is the world’s largest exporter of soybeans, while Argentina is the third-biggest shipper, according to the U.S. Department of Agriculture. The U.S. is the second-largest exporter of the oilseeds.
Argentina also is a large exporter of corn and wheat, USDA data show.
Soybean futures for January delivery jumped 22¢ to $13.35 a bushel overnight on the Chicago Board of Trade. Soymeal added $3.40 to $427.10 a short ton, and soy oil gained 0.8¢ to 42.93¢ a pound.
Corn futures for March delivery were up 3¾¢ to $4.87½ a bushel overnight.
Wheat futures for March delivery gained 10¼¢ to $6.52¼ a bushel, while Kansas City futures added 5¾¢ to $6.05¼ a bushel.