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US soyabeans soared nearly 3 percent to a one-week high on Monday after disappointing weekend rains in the Midwest farm belt and forecasts for hot and dry weather for the next two weeks when the crop sets pods, a critical stage for yields.
Ten analysts polled by Reuters expected the condition of the corn and soyabean crops to decline further, but at a less drastic pace than in previous weeks, especially for corn which is already damaged beyond repair in many areas. The analysts were expecting 23 percent of the corn crop to be in good-to-excellent condition as of Sunday, down 3 percentage points from the previous week. Soyabean ratings were seen falling 2 points to 29 percent in the same category.
At the expected levels, the ratings are the worst since the last major drought to affect crops in 1988. New-crop December corn futures have rallied 49 percent over the past six weeks, while November soyabeans have gained 20 percent. Benchmark September wheat have surged 40 percent but remain under the 2008 high above $13 per bushel. On Monday, Chicago Board of Trade new-crop December corn rose 2.7 percent to $8.14-1/2 a bushel by 1504 GMT, after touching a contract high of $8.17-1/4 a bushel. November soya rose 2.3 percent to $16.38-3/4. September wheat gained 2.0 percent to $9.17-1/2 a bushel.

Copyright Reuters, 2012

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