Argentine farmers are betting the peso’s biggest slump in 12 years isn’t over by holding on to an estimated $4 billion of stockpiled soybeans in a measure that may deepen the country’s financial crisis.
Soybean prices may rise this year because U.S. farmers plant less and demand for animal feed and cooking oils made from the oilseed will increase, said Richard Feltes , vice president of research for R.J. O’Brien & Associates LLC.
CME Group Inc., owner of the world’s largest grain market, is set to cut trading hours next week as the exchange backs off expanded access that customers complained was too long and eroded market liquidity.
IntercontinentalExchange Inc., the second-largest U.S. futures market, is adding agricultural contracts to draw trading from speculators betting on price swings linked to changes in U.S. government crop estimates.
Soybeans fell the most in three weeks as the highest prices this year prompted U.S. farmers to boost sales and processors offered smaller premiums for deliveries. Wheat futures also slid while corn rose.
Wheat prices may rally another 12 percent from a 23-month high as a Russian ban on grain exports boost demand for stockpiles from the U.S., said Bob Young , the chief economist at the American Farm Bureau Federation.