Drought in Argentine will keep prices for soy and corn

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The unexpected bad weather in South America considerably affects future contracts for soybeans in Chicago this week. Hot and dry weather, preserved in Argentina and Southern Brazil, as well as continues lack of precipitation, damage crops, which was officially stated, in particular, by the Ministry of Agrarian Policy of Argentina.

<p>The unexpected bad weather in South America considerably affects future contracts for soybeans in Chicago this week. Hot and dry weather, preserved in Argentina and Southern Brazil, as well as continues lack of precipitation, damage crops, which was officially stated, in particular, by the Ministry of Agrarian Policy of Argentina.</p>
<p>Currently there is no corn or soybean vegetation within the region, therefore their harvest is under great deal of risk. Taking that into account, in Chicago, corn quotations hit week’s highest. Soybean picked up same direction.</p>
<p>Forecasts, in the meanwhile, are still disappointing- for the next ten days, there are no significant precipitations predicted in Argentina. Such situation, however, is much welcomed by Chicago “Bulls” — the prospective growth of corn and soybean futures is under doubt lately due to expected decline of Chinese interest to American grain and oilseed imports. The disturbing news from the fields of Argentina is likely to help support shaken quotes for crops — at least until the New Year they are more likely to gravitate to the upward price trend.</p>