Hot Commodities: Soybeans Spike In Global Markets As Traders Eye Weather Conditions

10 Oct 2022 , 01:20 PM

The global Soybean futures spiked today despite weak equities as markets eyed a likely shortfall in South American supplies. The commodity had dropped near a two month low of $13.50 per bushel last week but participants are now eying the La Nina weather pattern and also trying to assess its overall impact on global production. If a La Nina weather pattern holds, it will be the third consecutive La Ni?a-impacted soybean crop year in South America. In Argentina and certain parts of Brazil, La Ninas tend to bring hot and dry conditions that can drag down agricultural yields, resulting in inventory drawdowns. This likelihood is capping the downside in prices now and the counter currently quotes at $13.90 per bushel, up around 1.80% on the day.Powered by Commodity Insights