U.S. soybean futures are trading higher Wednesday, fueled by ongoing worries about deteriorating crop conditions from extremely stressful weather across the central U.S. crop belt.
Investors are continuing to dial in the potential for lower yields, as dryness hinders the development of crops in the eastern and southern Midwest.
CBOT July soybeans are 18 cents, or 1.2%, higher at $14.88 1/2 a bushel. The new-crop CBOT November contract is trading up 21 1/4 cents, or 1.5%, at $14.34 1/2 a bushel.
Traders are factoring in the risk of yield losses, as the hot, dry weather forecasts for the Midwest are seen as a detriment to soybean yield potential.
"Although we have not yet seen a lower yield estimate for either corn or soybeans from the U.S. Department of Agriculture, the deterioration in crop ratings almost guarantees that the USDA will be lowering their yield estimates very soon," said Joseph Vaclavik, president Standard Grain, Inc. in Chicago.
Episodes of hot to very hot temperatures look to impact crops during the balance of this week and for much of next week as well, according to meteorologists at Telvent DTN.
Dryness and heat is of much concern for developing soybeans at this time, especially in the eastern and southern areas of the U.S. Midwest, Telvent said in the forecast.
Meanwhile, hot and mostly dry weather during the next 7 to 10 days in the U.S. Delta will increase stress on crops with double-cropped soybean plantings impacted by the heat, Telvent added.
"There's not much to do over the next 48 hours except worry about the heat, and dissect each new batch of weather model runs," said Matt Zeller, analyst with brokerage INTL FCStone.
Corn-belt states are expected to experience at least one day of 100 degree Fahrenheit temperatures this week, with some seeing these extreme temperatures for 2 or 3 days...