(Bloomberg) -- Soy futures traded in Chicago were on track for a fourth week of gains, as farmers in Brazil get ready for planting.
Soy is up more than 1% this week, extending a rebound after hitting the lowest levels since 2020 last month. Dry weather has been pushing back the start of the planting season for a new soy crop.
“A large increase in crop area in Brazil looks unlikely because low corn and soybean prices might render some marginal areas unprofitable for cultivation,” according to Kpler analyst Ishan Bhanu. “Such an area response to lower prices could help support prices as planting progresses.”
Analysts expected the USDA to hike soybean output expectations in its WASDE report on Thursday, but it slightly pared its production estimate to 4.586 billion bushels.
The share of US soybean crops experiencing drought jumped 7 points to 26%, the USDA said in a report.
©2024 Bloomberg L.P.
