Soybeans rise as excessive rain threatens US crop
Monday, 21 June 2010
CHICAGO, June 20 (Bloomberg): Soybeans rose, notching the first weekly gain since April, on speculation that unusually heavy rain will leave US Midwest fields too muddy to plant. Corn also gained.
Farmers in parts of Iowa and Illinois, the biggest US soybean producers, must decide by June 20 to receive crop insurance payments instead of planting. Some areas received six times the normal rainfall in the past month, delaying soybean seeding and threatening to damage newly planted corn crops.
"The rain amounts are looking extremely heavy for corn and for beans," said Mike Zuzolo, the president of Global Commodity Analytics in Lafayette, Indiana. "The preventive planting date is coming up for beans on June 20. That keeps shorts from pressing the downside and keep longs from taking profits."
Farmers in parts of Iowa and Illinois, the biggest US soybean producers, must decide by June 20 to receive crop insurance payments instead of planting. Some areas received six times the normal rainfall in the past month, delaying soybean seeding and threatening to damage newly planted corn crops.
"The rain amounts are looking extremely heavy for corn and for beans," said Mike Zuzolo, the president of Global Commodity Analytics in Lafayette, Indiana. "The preventive planting date is coming up for beans on June 20. That keeps shorts from pressing the downside and keep longs from taking profits."