Heat wave in southern U.S. sends soy, wheat prices up

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Published: September 7, 2000

Days of searing heat in the southern Midwest and Delta states last week pushed soybean prices more than 20 cents a bushel higher than the week before.

November soybeans in Chicago hit a 10-week high on Aug. 31 before falling back a couple of cents

Sept. 1, the day before the Labor Day weekend, on profit taking and a forecast of cooler weather.

The November canola contract on the Winnipeg Commodity Exchange rose more than $6 a tonne during the week in sympathy with the soybean market.

American traders suspect the heat damaged soybeans at their critical pod-filling stage.

Some traders believe soybean production estimates will be revised down by at least five percent.

However, a continued price rally would be held back by the fact that even with the damage, the size of the crop would still be a record.

Wheat futures up too

Wheat futures also rose because of the heat and dryness in the southern U.S. There are concerns it could affect how much winter wheat is sown.

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