Photo: AP Images
Grain futures soared as traders anticipate an updated crop forecast from the U.S. Department of Agriculture tomorrow.Corn for December delivery jumped 6% to $6.45 a bushel
Wheat for December delivery that surged nearly 7.7% to $6.58 per bushel.
Soybeans for November delivery gained 5.1% to hit $12.37 a bushel.
Soybean prices in particular seem to be emerging from a long rout as demand for the commodity outpaced farmers’ ability to grow it.
Global demand for soybean jumped 47% in the past decade, led by demand from India, China and Brazil. Consumption is expected to increase 3.8% to 262.24 million metric tons, a record high, in the year ending September 30, 2012, Bloomberg reported.
Meanwhile, the U.S. soybean harvest is expected to decline 7.3% this year, in part because more farmers are choosing to plant corn because they earn more, and in part because of supply-side worries.
Now here’s a look at that spike in Soybean futures:
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