La Nina may hurt soybean crops in the U.S., the largest exporter, and South America, should it cause a “severe” drought between early August and February, likely curbing yields, Telvent DTN Inc. said. The price of the oilseed had the first gain in five sessions.
The drought that ravaged U.S. corn and soybean crops and spurred record prices may persist, threatening a recovery in production this year that’s needed to bolster global inventories, according to forecasters.
China, the second-largest corn consumer, may miss an output target of 168 million metric tons in the year beginning October if dry weather persists in the central and northeastern growing areas, Telvent DTN Inc. said. Futures snapped four days of losses.
Wheat advanced for a second day, extending a rebound from the lowest level in nine months, on concern that freezing conditions in the U.S. probably hurt the winter crop, while wet weather may delay planting of the spring crop. Corn fell for a fourth day, deepening a bear market.
The second major snowstorm in a week for the southern Great Plains is delivering moisture to U.S. wheat crops that went dormant in November in the worst condition since at least 1985 because of a drought.