Soybeans up on South American dryness
A market analyst says dry weather in Brazil helped pushed soybeans higher Tuesday.
Al Kluis with Kluis Commodity Advisors tells Brownfield conditions are variable across the South American country.
“There’s about a third (of Brazil) that really looks good, a third that is somewhat challenged, and a third that’s in pretty tough shape. Brazil is a huge country, they grow soybeans for a long distance from north to south. But overall, the pattern continues to look pretty good (for) central and northern Brazil.”
But he says southern Brazil into Argentina remains very dry.
Between now and Thanksgiving, Kluis looks for the market to keep trending up.
“But I don’t think it’s going to be at the same pace that we’ve been going up in recent weeks. So we’ll be watching of course weather in South America, export sales to China, but this time of year once you get to that week of Thanksgiving and Christmas, typically the volume starts to slow down.”
Kluis says continued commodity fund buying has been supportive to prices.
January soybeans gained more than 16 cents Tuesday, closing just under $11.70 per-bushel.