Soybeans climbed to a nine-year high as dimming prospects for South American harvests threaten global supplies.
Futures climbed as much as two percent to US$16.68 a bushel in Chicago, the highest for a most-active contract since late 2012. That risks exacerbating inflation for global food and livestock feed, which have also been hit by snarled supply chains, labour shortages and rising energy bills.
Drought has hurt the production outlook in key South American growing regions like Brazil, the world’s number one soybean grower and shipper. Argentina and Paraguay are also expecting smaller crops. The region’s harvest has just kicked off and will span the next few months.
The shortfalls there are spurring more buyers to shift toward US purchases. Other major oilseeds such as palm and canola are also in short supply worldwide, sending vegetable oil prices soaring.
by Kim Chipman & Megan Durisin, Bloomberg