By Joanna Levin
SOYABEAN futures soared 6% last week on forecasts of a heat wave that could damage the crop this week. The Chicago July futures contract leapt 38.25¢/bushel during the week to 652¢ on Friday (19 June).
However, cooler weather forecasts yesterday caused the contract to give back 3.75¢ of its gains to close at 648.25¢/bushel. Producers took advantage of the rally to sell some of their crop over the weekend, which also contributed to the defensive market on Monday. Looking ahead, most analysts believe that the rally could prove short-lived, unless the weather stays very hot and dry.
Soya meal rallied on the strength of beans, after hitting a contract low at the start of last week. The Chicago July contract closed on Friday at $170.80/ton, up $16.10 on the week and its highest level since late April. The contract managed to hold on to most of its gains on Monday, despite the drop in beans.