The prices of soybeans go up but were limited by easing worries of dry weather

Soybean futures

The prices of U.S. soybeans went up, departing from its almost one-month low in Tuesday’s session, however the rise was capped due to worries of losses from the dry weather easing.

Futures contracts for soybeans at the Chicago Board of Trade gained 0.3 percent to trade at $9.74 per bushel. It closed to its lowest since early July at $9.69 per bushel on Tuesday, down 3.5 percent.

Its gains were however limited by expectations of a wetter weather in major growing regions, easing worries over the dry weather.

Tobin Gorey, agricultural strategy director at the Commonwealth Bank of Australia said: “Weather forecasters have increased rainfall in their forecasts for the first half of August. Soybean crops now seem less at peril from hot summer weather.”

Around 59 percent of the soybean crops in the United States were rated to be in good-to-excellent condition by the United States Department of Agriculture on Monday. The rating was amount rated was 2 percent higher than the previous week’s 57 percent.

According to estimates from INTL FCStone, U.S. soybean production for the year 2017 would be at 4.235 billion bushels, with a yield of 47.7 bushels an acre on average. The estimates are close to what the USDA forecasted at 4.260 billion bushels with 48.0 bushels per acre yield.

In other grains, futures contracts for wheat went up 0.2 percent to $4.62 per bushel and futures for corn gained 0.4 percent to trade at $3.78 per bushel.

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