Investing.com – Soybean futures edged lower in thin year-end trade on Thursday, but remained close to a seven-week high as investors continued to monitor weather conditions in South America.
On the Chicago Mercantile Exchange, soybeans futures for March delivery traded at USD12.0375 a bushel during European morning trade, shedding 0.3%.
It earlier fell by as much as 0.55% to trade at a session low of USD11.9662 a bushel. Prices climbed to USD12.0537 on Wednesday, the highest since November 9.
Trading volumes were expected to remain light ahead of the New Years holiday weekend, as many traders have closed books before the end of the year, reducing liquidity in the market and increasing the volatility.
Soybean prices have advanced in nine of the past ten trading sessions, rallying nearly 9.5% as adverse weather conditions threaten crops in Brazil and Argentina, boosting demand for U.S. supplies.
Traders have been focusing on crop prospects in Southern Hemisphere countries in recent sessions, as most Northern Hemisphere soy crops have been harvested by now.
Brazil is the world’s second largest soybean exporter. Downbeat crop prospects in the South American country could boost demand for U.S. supplies, which is the world’s largest shipper of the grain.
Agricultural meteorologists expected hot and dry weather conditions to linger across major soybean-growing regions in the southern part of Brazil through the first week of January.
Most parts of Rio Grande do Sul and southern Parana states, which combine to produce nearly 14% of Brazil's soybeans, will have little rain in the next two weeks.
Industry researcher Oil World said Wednesday that South American soybean crops face increasing damage in the next five to 10 days, should forecasts for mostly dry weather eventuate.
The industry group added that damage so far has been mainly to corn crops, and stress on soybeans will increase in coming days if the necessary moisture doesn’t arrive, it said.
The heat of the Southern Hemisphere's summer has been compounded by La Niña, a phenomenon in which tropical waters in the Pacific Ocean turn unusually cold, causing dry weather conditions in South America.
Elsewhere on the Chicago Mercantile Exchange, wheat for March delivery declined 0.35% to trade at USD6.4875 a bushel, while corn for March delivery added 0.35% to trade at USD6.4388 a bushel.
On the Chicago Mercantile Exchange, soybeans futures for March delivery traded at USD12.0375 a bushel during European morning trade, shedding 0.3%.
It earlier fell by as much as 0.55% to trade at a session low of USD11.9662 a bushel. Prices climbed to USD12.0537 on Wednesday, the highest since November 9.
Trading volumes were expected to remain light ahead of the New Years holiday weekend, as many traders have closed books before the end of the year, reducing liquidity in the market and increasing the volatility.
Soybean prices have advanced in nine of the past ten trading sessions, rallying nearly 9.5% as adverse weather conditions threaten crops in Brazil and Argentina, boosting demand for U.S. supplies.
Traders have been focusing on crop prospects in Southern Hemisphere countries in recent sessions, as most Northern Hemisphere soy crops have been harvested by now.
Brazil is the world’s second largest soybean exporter. Downbeat crop prospects in the South American country could boost demand for U.S. supplies, which is the world’s largest shipper of the grain.
Agricultural meteorologists expected hot and dry weather conditions to linger across major soybean-growing regions in the southern part of Brazil through the first week of January.
Most parts of Rio Grande do Sul and southern Parana states, which combine to produce nearly 14% of Brazil's soybeans, will have little rain in the next two weeks.
Industry researcher Oil World said Wednesday that South American soybean crops face increasing damage in the next five to 10 days, should forecasts for mostly dry weather eventuate.
The industry group added that damage so far has been mainly to corn crops, and stress on soybeans will increase in coming days if the necessary moisture doesn’t arrive, it said.
The heat of the Southern Hemisphere's summer has been compounded by La Niña, a phenomenon in which tropical waters in the Pacific Ocean turn unusually cold, causing dry weather conditions in South America.
Elsewhere on the Chicago Mercantile Exchange, wheat for March delivery declined 0.35% to trade at USD6.4875 a bushel, while corn for March delivery added 0.35% to trade at USD6.4388 a bushel.