Soybeans at this time are much more vulnerable than corn, as corn has already passed its pollination stage. Soybeans are still podding and adding beans to the pods. The hot, dry weather has the potential to affect crop yields.
Although a very wet spring delayed planting of the 2013-14 U.S. soybean crop, ideal weather materialized after it was planted. But because the crop was planted late, it is still vulnerable to the hot and dry weather that is hitting key growing regions.
Corn jumped the most in 14 months and soybean futures rallied the most since 2011 as hot, dry Midwest weather threatens to erode crop yields in the U.S., the world’s biggest grower. Wheat also advanced.
Back in April, early forecasts for a record 2013-14 US soybean crop pushed prices down far enough for even die-hard bulls to declare lights out on the bull market. It was a given that the coming record crop would replenish low inventory levels.